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Designing and Executing Long-Term Incentive Plans

BEN BURNEY

Exequity, LLP

BILL GENTRY

Grant Thornton LLP

This chapter will help readers design and execute long-term incentive plans. It covers six areas of critical information that will enable them to accomplish this task. The six areas are:

•   Types of long-term incentives

•   Deriving the intrinsic value of the most common long-term incentives

•   Introduction to approaches to awarding long-term incentives

•   Overview of performance plans and their most common structures

•   Overview of the most prevalent performance plan metric—relative total shareholder return

•   Key questions when considering alternatives for long-term incentive design

Long-term incentive compensation (LTI compensation) ...

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