David Craddock explains how the long-term incentive plan operates, and considers its advantages and disadvantages VAT focus
An L-TIP rewards the participants in the form of cash or shares usually shares on the basis of the achievement of performance targets. The executive is challenged to achieve the performance targets through the award of a deferred right to receive shares at nil or negligible cost. The deferral may typically have two constituent elements: (1) a three-year waiting period before the number of shares to which the participant is entitled is determined on the basis of the performance criteria and maybe (2) a further waiting period of say two or three years before the participant can exercise his right to sell the shares to which he has become entitled two or three years earlier. While an L-TIP acts as an incentive and a motivation...
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David Craddock explains how the long-term incentive plan operates, and considers its advantages and disadvantages VAT focus
An L-TIP rewards the participants in the form of cash or shares usually shares on the basis of the achievement of performance targets. The executive is challenged to achieve the performance targets through the award of a deferred right to receive shares at nil or negligible cost. The deferral may typically have two constituent elements: (1) a three-year waiting period before the number of shares to which the participant is entitled is determined on the basis of the performance criteria and maybe (2) a further waiting period of say two or three years before the participant can exercise his right to sell the shares to which he has become entitled two or three years earlier. While an L-TIP acts as an incentive and a motivation...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
