A&M assists organizations with developing long-term incentive (LTI) programs to aid with retaining and incentivizing top talent while helping the company achieve key performance goals and drive long-term growth.

Below are threshold issues that should be addressed by companies that are considering implementing a LTI plan:

• Eligibility: Which individuals will be eligible to receive awards? Will LTI grants include employees below the executive level?
• Form of award: Grant real equity ownership or phantom equity?
• Type of award: Grant full value awards or appreciation only awards?
• Frequency of grants: How often will LTI grants be made? Will awards be granted annually, or will a “mega grant” be made up front?
• Value of award: How do you determine the value of the entity and the value of each award granted?
• Award vesting: How does the award vest? Based on performance, continued service or an event?
• Settlement of award: When will the individual receive value from the awards granted to them? Upon an event, at a defined time or at the option of the recipient? What are the cash flow ramifications?

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Ensuring your organization has a long-term incentive (LTI) program to aid and retain top talent is critical when working to combat the Great Resignation. A&M helps clients design LTI programs starting with choosing the ideal award vehicle for their specific goals and objectives.

Download LTI Primer

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