Searching Pondering Equity-Based Long-Term Incentive Plans on page 10

Course Designing and Managing Base Pay Systems Understand how equitable base pay programs are designed and administered.

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.

Workspan Daily article;ERISA at 50: The Evolution of Retirement Benefits , Workspan Daily article;Retirement Plans — Design Considerations & Administration , course; The funded status of the largest corporate defined benefit (DB) pension plans in the United States made modest gains in 2024 despite rising long-term interest rates and substantial gains for the domestic equity market.

“It is a work in progress,” Nancy Romanyshyn, senior director of pay strategy and partner success at Seattle-based Syndio, said of pay equity.

One beneficial strategy is to consider making customer success metrics a component of the sales incentive compensation plan.

Typically, the private equity pay model offers lower cash compensation but higher long-term, equity-based compensation.

Choice Program Letting employees choose the equity mix By allowing bespoke cash-to-equity mixes, plans may be tailored to both “blockbusters” and “indies.”

There are many effective forms of LTIs that family businesses can choose from: ;Real equity is suitable for companies willing to share ownership with non-family executives.; ;Phantom equity mimics equity value growth without conferring actual ownership.; ;Stock appreciation rights (SARs) provide cash or equivalent payouts tied to growth in company valuation.; ;Long-term cash plans deliver performance-based payouts over multi-year periods without equity dilution.; Whichever LTI plan design is selected, the board must evaluate plan objectives and assess how well the plan aligns with business strategy and company culture.

Long-Term Value Micro HR planning is not just a reaction to current challenges — it serves as a proactive tool for aligning workforce strategies with long-term business objectives.

President Donald Trump about making alternative assets more accessible in 401(k) plans;; ;Department of Labor amendments regarding alternative assets and cryptocurrency in retirement plans; and,; ;A reduction in Securities and Exchange Commission restrictions on private equity in certain types of funds; … the question of incorporating these types of investments into workplace retirement plans is increasingly on the radar for employers and their total rewards (TR) professionals.