The Advisors' Blog

– Broc Romanek

Here’s the intro from this article by Semler Brossy’s Seymour Burchman & Jason Brooks:

Performance-based long-term incentives (LTIs) have become the most dominant form of LTI. In most of these plans, performance goals are set to be attained in a fixed period of time, typically three years. But does it have to be this way, especially in the case of major, one-time initiatives?

There are certain situations where companies should consider replacing traditional, time-based vesting with vesting based on the attainment of key milestones, such as the successful completion of a business startup, entry into a new category, completion of a major re-organization or a specific transaction.