Searching Pondering Equity-Based Long-Term Incentive Plans on page 1

In the absence of a public market or some plan to monetize its equity, a company considering an equity-based long-term incentive program should be cognizant of the fact that payments under the plan will need to come out of cash flow from operations.

WTW’s “2021 Long-Term Incentives Policies and Practices Survey” found that, on average, U.S. companies offering long-term incentives gave awards to 3.2% of the entire employee population.

Long Term Incentives: Pay Equity Best Practices and Considerations On Demand until November 01, 2025 Supported by Facebook Twitter LinkedIn Join us for a comprehensive session that explores the critical intersection of pay equity and long-term incentives (LTI).

Pandemic-Related Changes to Short-Term Incentive Plans Only Temporary Survey on Short-Term and Long-Term Incentive Pay Practices at Public, Private, Nonprofit and Government Organizations July 21, 2021 Scottsdale, Arizona — Changes to short-term incentives (STIs) prompted by the global pandemic/economy are largely temporary, and some organizations cite the pandemic as the reason for modifying long-term incentives (LTIs).

This follows an August 2022 article , which explained WTW’s findings based on publicly disclosed initial public offering data reported by PE-backed portfolio companies. ( Editor’s Note, 9/17/2025: Long-term incentives [LTIs] are a type of deferred compensation that rewards employees for achieving performance goals over an extended period, typically more than one year, to encourage employee retention, motivate long-term commitment and align their financial interests with the organization’s long-term success.

Synthetic equity on the blockchain (phantom stock) program is a supercharged technology version of a long-term incentive plan (LTIP), the cornerstone of executive pay.

HOW LONG-TERM CARE INSURANCE WORKS Long-term-care insurance pays for care when policyholders are no longer able to care for themselves.

DRIVING BETTER BEHAVIORS Knowing that the value-based incentive plan can better relate to TSR makes it clear to managers that creating long-term value for the company is the best outcome for everyone involved, whereas traditional metrics tied to compensation create incentives that are often at odds with medium and long-term value creation.

In developing an equity-based long-term incentive plan, the most significant decision to make initially is whether the plan will be based on real equity or phantom/synthetic equity.

(Editor’s note: WorldatWork recently switched its usage of the terms “diversity, equity and inclusion” and “diversity, equity, inclusion and belonging” to “equitable and diverse workplaces.”