Searching Pondering Equity-Based Long-Term Incentive Plans on page 18

(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.”

Nearly 40% of respondents took one or more actions to address incentive plan goal-setting challenges, such as delaying the timing to finalize goals, widening performance ranges, and adding or increasing the emphasis on relative metrics.; ;Most respondents are not planning significant changes to incentive plan designs for 2026 or the short-term incentive (STI ) performance mix or long-term incentive (LTI) award vehicle mix.Most also have not made changes to equity grant practices in response to stock market volatility or proposed shareholder advisory group policy changes.; ;Among respondents with incentive cycles ending in 2025, most (roughly half for STI and 60% for LTI) do not currently anticipate the use of discretion, with one-third taking a “wait and see” approach.

For 2026, boards should carefully consider incentive plan design to ensure these plans are designed for resilience, including goal-setting, pay mix, long-term incentive (LTI) vehicle mix, etc. 2.

Base your base salary increase budgets on the cost of labor in relative markets instead of cost of living and inflation.

While consistency in strategy is undoubtedly crucial for long-term success, the ability to adapt and provide flexibility in compensation plans is emerging as a powerful catalyst for boosting motivation and driving results.

The study examines issues such as the top factors organizations use when determining rewards, the leading employee concerns related to internal and external equity, how frequently employees complain about their base pay, how men and women tend to view fairness according to different criteria and more.

Explore Various Pay Models Although various strategies are used, TR pros should investigate the standard models below and whether differentials are based upon a percentage of salary or a fixed dollar amount before a plan is determined.

We explored what the future of work implies for employee incentives through an inductive multiple-case study of seven European-based companies.

The Equity Plan Share Request Process & Best Practices Guide outlines the process and who should be involved at each step, plus includes best practices to facilitate a smooth process and increase the likelihood of approval.; Member Tool Access Use the Equity Plan Share Request Checklist to navigate through the equity compensation plan share request process.

These agreements then create an opportunity for the company to provide friendly payout terms for unpaid short-term incentives (STI) and unvested long-term incentive (LTI) payments.