Searching Pondering Equity-Based Long-Term Incentive Plans on page 3

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A global technology company had a long history of using a single standard goal-based sales compensation plan design across the enterprise.

;Nearly half include or anticipate including long-term incentive plan equity/stock-based grants.

Hybrid plan options include: An executive bonus plan that includes a sales metric,;A sales compensation plan that includes a corporate metric, or;Splitting an executive’s target incentive between the executive bonus plan and sales compensation plan.

It’s important to note that reduction or suspension of contributions may not be available mid-year for certain safe harbor plan designs.; Like incentive plans, retirement plans may include vesting schedules, but qualified plans are limited to time-based vesting.

In this environment, short-term incentive (STI) plans should both encourage results and signal organizational priorities.

;Nearly half include or anticipate including long-term incentive plan equity/stock-based grants.

Although ESG metrics align with long-term goals in many respects, they appear much more frequently in short-term incentive plans (Figure 3).

Policy Changes on Comp and Talent Management , Workspan Daily article;How CEO Pay Trends Reflect a Changing Performance Landscape , Workspan Daily article;Examining the Potential of New Executive Compensation Structures , Workspan Daily article; For companies considering an initial public offering (IPO), one of the most critical items to address is the establishment of a long-term incentive (LTI) plan strategy and share reserve for post-IPO equity awards.

Setting incentive plan goals for ESG and HCM metrics can be particularly challenging to get right for any company.