Final answer:
Equity-Based Compensation Plans, including Incentive Stock Option Plans, Phantom Stock Plans, and Restricted Stock Units (RSUs), provide executives with ownership stakes in a company.
Step-by-step explanation:
The types of plans that provide an executive with ownership stakes in a company through mechanisms such as stock option plans and stock purchase plans are known as Equity-Based Compensation Plans.
These plans include Incentive Stock Option Plans, which give executives the right to purchase shares at a fixed price in the future; Phantom Stock Plans, which provide a bonus based on the value of the company's shares without conferring actual ownership; and Restricted Stock Units (RSUs),
which are company shares granted to employees subject to vesting conditions. The purpose of these plans is to align the interests of executives with those of shareholders, providing an incentive to drive company performance and ultimately increase shareholder value.