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term incentive plan (LTIP) is a company policy that rewards employees for reaching specific goals that lead to increased shareholder value. In a typical LTIP, the employee, usually an executive, must fulfill various conditions or requirements.
term incentive plan (LTIP) incentivizes employees to take actions that will maximize shareholder value and promote longterm growth for the organization. In a standard LTIP, the employee, who is normally a senior executive, is required to meet a number of criteria to receive the incentive.
Through LTIPs, a new long-term incentive can be granted to an employee every year, rather than a one-time incentive, similar to a holiday bonus.
An annual incentive plan outlines compensation to be paid to employees when they achieve certain performance-related goals over 12 months. This compensation is in addition to their regular salary ? it may be an employee gift, cash incentive, or another type of bonus or reward.
Incentive compensation management is the strategic use of incentives to drive better business outcomes and more closely align sales rep behavior with the organization's goals. Incentives can be structured in multiple ways, including straight commissions, bonuses, prizes, ?spiffs,? awards, and recognition.
Long-term incentives, or LTI as they're often called, are a valuable part of a total compensation package both for delivering rewards and focusing employees on desired future outcomes and objectives.
An example of a long-term incentive could be a cash plan, equity plan or share plan.
An LTIP may reward and employee with shares, cash or other commodities such as cryptocurrency. The company can design the scheme in whichever way it feels will give the most appropriate outcome for the staff, the company and the shareholders.