Searching Pondering Equity-Based Long-Term Incentive Plans on page 8

For WorldatWork Members 5 Things TR Pros Can Do to Mitigate Pay Transparency Risks , Workspan Daily Plus+ article;Answers to Common Employee Questions on Pay Transparency , Workspan Daily Plus+ article;Pay Equity Practices , research;Pay Equity Planning Guide , tool; For Everyone Rapinoe: Pay Equity Can Be a Goal for Everyone , Workspan Daily article;Tips on Taking the Emotion Out of Pay Conversations , Workspan Daily article;Committing to Pay Equity , course;Addressing Pay Equity Under Increased Scrutiny , on-demand webinar; Pay transparency legislation aimed in part at helping to improve pay equity continues to expand around the world.

LONG-TERM INCENTIVES Long-term incentive plans (LTIPs) are a critical component of executive compensation, especially in public companies where they can constitute a significant portion of the total annual pay for executive officers.

In this environment, more performance-based pay may be necessary to motivate and engage high performance(e.g., 50% base, 50% incentive). 5) Know What to Measure Incentive plan measures generally define the specific performance standards or criteria that determine success.

;Experiment with different incentive parameters to minimize incentive payout moderation to the incentive pool.; Auld will demonstrate the creation of interactive tables, charts and data tables to illustrate payout costs for different business areas and levels, payout distribution and incentive pool moderation required.

Since a company’s equity is typically wiped out in a restructuring, the long-term incentive program can be converted to a cash-based program with shorter performance periods (sometimes the long-term incentive program is even combined with the annual incentive program).

For companies updating 2024 incentive plan designs, trends include updating measures or restructuring plan designs using scorecards.

;Gain valuable resources, including data examples, Excel worksheet templates, and pay analysis FAQs to help you in your pay equity efforts.; Course 3: Committing to Pay Equity Learn to maximize the value of your pay equity analysis and understand the mindset that drives a commitment to long term pay equity.

Understanding where you have competitive advantage in terms of your workforce — and the areas where you are susceptible —is critical to overall business survival in the short term and to a company’s success in the long term.

Top executives typically receive 60% or more of their total pay through long-term incentives, which are often denominated in company equity or tied to financial metrics closely tied to TSR.

The measure(s) would likely be included in long-term incentive plans, as risk levels typically change more slowly over time.