The Advisors' Blog

– 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.