Long-term incentive plan (LTIP)

Long-term incentive plan (LTIP),

Definition of Long-term incentive plan (LTIP):

  1. In a typical LTIP, the employee, usually an executive, must fulfill various conditions or requirements. In some forms of LTIPs, recipients receive special capped options in addition to stock awards.

  2. A system that companies use to reward long-term employee performance. The employee who fulfills specific conditions may be awarded company shares at no cost or a cash bonus. Company shares are the common incentive, and they are often distributed in half shares. Half are given immediately, and the other half are awarded after a certain date.

  3. A long-term incentive plan (LTIP) is a company policy that rewards employees for reaching specific goals that lead to increased shareholder value. .

Meaning of Long-term incentive plan (LTIP) & Long-term incentive plan (LTIP) Definition