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

Starbucks plans to begin rolling out the incentive rewards program and other tip and pay enhancements across coffeehouses starting in July.

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.

-based companies expand internationally, he added, they often seek to compensate their international employees with equity long-term incentive awards that mirror those received by domestic employees, both in size and form — stock options, restricted stock, phantom stock and other forms of equity compensation.

(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.”

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.

Sander van ’t Noordende, the CEO of recruitment firm Randstad, countered that statement in a Jan. 23 Forbes article : “Some businesses are rolling back on their equity-based programs, but most businesses I talk to are navigating and staying the course.

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

According to proxy filings as of June 30, 2022 from Main Data Group , the prevalence of ESG metrics of any type in incentive plans has risen to majority practice, with 57% of S&P 500 companies including these metrics in either the short- or long-term plan as of 2021.

A Note on “Incentive Earned” and Clawbacks In the terms and conditions document, organizations should clearly define what “incentive earned” means.

Workspan Daily Plus+ article;Pay Fairness: Achieving Trust and Transparency , Workspan Magazine article;Integrating Pay Equity Compliance with Effective Salary Administration , Journal of Total Rewards article;WorldatWork Study: More Companies Acting on Pay Equity , Workspan Magazine article;Pay Equity Planning Guide , tool; For Everyone What Can You Do When Workers Use AI to Inform Their Pay Expectations?