Chapter 13. Long-Term Incentive Design
1. Long-Term Incentive Opportunity & Mix
If annual incentive design could serve as the basis for a book of its own, then long-term incenti...
2. Long-Term Incentive Vehicles
a. Stock Options Stock options used to be the most prevalent long-term incentive vehicle for sen...
3. Denomination of Award & Performance Period
Denomination of Award While annual incentive plans are generally denominated as a cash opportuni...
4. Performance Measures
In contrast to annual incentive plans, where companies rarely use stock price as a performance me...
5. Form of Settlement & Termination Treatment of Long-Term Incentive Compensation
a. Form of Settlement Most often, awards that are denominated in cash are settled in cash and aw...