January 4, 2018
LTIPs: Trends in the “Top 250”
– Broc Romanek
This study by FW Cook analyzes LTIP trends among the 250 largest S&P companies. Notable findings include:
– Companies continue to employ a portfolio strategy for long-term incentives to balance the advantages and drawbacks of each vehicle type, with nearly 90% using two or more grant types.
– Stock options are trending down – 59% of companies awarded them last year.
– TSR remains the most prevalent performance metric, with almost every company that uses it measuring on a relative basis.
– 95% of companies grant performance awards, with 59% utilizing two or more performance metrics and 88% using a 3-year performance period.