{{short description|Payment in shares to incentivise company executives}} A '''long-term incentive plan''' ('''LTIP''') is a type of [[executive compensation]] that typically comes in the form of performance shares or matching shares of the company. In the [[United States]], these plans were used heavily since Internal Revenue Code Section 162(m) passed, which permitted deductions for certain performance-based compensation without limitation. Upcoming changes in the [[Securities and Exchange Commission]]'s executive compensation policies, however, may change this practice. LTIPs are also used in the [[United Kingdom]].<ref>{{Cite web|url=https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim40015|title=EIM40015 - Employment Income Manual - HMRC internal manual - GOV.UK|website=www.gov.uk|language=en|access-date=2019-01-17}}</ref> In [[Switzerland]], LTIPs have seen a strong increase in use since the passing of the [[Swiss executive pay referendum, 2013]]. According to a recent report,<ref> {{Cite web|url=https://www.agnesblustconsulting.com/products/executive-compensation-report/|title=Independent Swiss experts for Executive Compensation|last=Plote|first=Christine|date=|website=www.plote.de|language=en|archive-url=|archive-date=|access-date=2019-01-17}} </ref> two thirds of companies rely on a single performance condition in their long-term incentive plan and half of the performance-based long-term incentive plans include a relative performance conditions such as [[relative return]]s.
==See also== *[[Executive compensation]] *[[Say on pay]]
== References == {{Reflist}}
{{DEFAULTSORT:Long Term Investment Plan}} [[Category:Executive compensation]] [[Category:Incentives]]
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