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Cracking the Secret Code of Long-Term Incentives in Private Companies

MYRNA HELLERMAN

Sibson Consulting

YELENA STILES

Sibson Consulting

Private-company long-term incentive (LTI) plans are unhampered by the scrutiny and commentary of regulators, investors, and the media. They do not need to rigorously conform to accepted practices and standard designs. Instead, LTI plans at private companies unabashedly reflect the owner’s unique decisions about the sharing of long-term economic success. Many owners view their LTI plan as the secret code to company success and closely guard its design and deployment as a private matter between the owner and the participants.

Although private companies run the gamut in size, complexity, and ownership, Sibson ...

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