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LTIP Payout means any long-term incentive award paid to a Participant under the LTIP relating to services performed during any performance period, whether paid or not paid during such performance period or included on the Federal Income Tax Form W-2 during such performance period.
term incentive plan (LTIP) incentivizes employees to take actions that will maximize shareholder value and promote longterm growth for the organization. In a standard LTIP, the employee, who is normally a senior executive, is required to meet a number of criteria to receive the incentive.
Long-Term Incentives (LTIs) are a form of variable compensation that is earned in the present but whose payment is deferred and spread over time. This can be cash compensation but often is in the form of stock or stock options.
LTI are typically granted with what is known as a vesting period. What this means is that grantees are conditionally granted equity, but they do not actually own it until the vesting period expires.
LTI compensation is Long Term Incentive compensation, a form of variable compensation that an employee earns in the present but which payment comes later and is normally spread out over time.
Every employer has their own qualifications as to how an employee becomes eligible for the LTIP. Generally all employees are eligible to receive the benefits after three to five years as long as they meet the performance goals specified by the company.
An example of a long-term incentive could be a cash plan, equity plan or share plan. A long-term incentive plan can typically run between three years and five years before the full benefit of the incentive is received by the employee.
Long-term incentives, or LTI as they're often called, are a valuable part of a total compensation package both for delivering rewards and focusing employees on desired future outcomes and objectives.