# Long-term incentive plan

> Mediated Wiki article. Canonical URL: https://mediated.wiki/source/Long-term_incentive_plan
> Markdown URL: https://mediated.wiki/source/Long-term_incentive_plan.md
> Source: https://en.wikipedia.org/wiki/Long-term_incentive_plan
> Source revision: 1345774447
> License: Creative Commons Attribution-ShareAlike 4.0 International (https://creativecommons.org/licenses/by-sa/4.0/)

Payment in shares to incentivise company executives

A **long-term incentive plan** (**LTIP**) is a type of [executive compensation](/source/Executive_compensation) that typically comes in the form of performance shares or matching shares of the company. In the [United States](/source/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](/source/Securities_and_Exchange_Commission)'s executive compensation policies, however, may change this practice. LTIPs are also used in the [United Kingdom](/source/United_Kingdom).[1] In [Switzerland](/source/Switzerland), LTIPs have seen a strong increase in use since the passing of the [Swiss executive pay referendum, 2013](/source/Swiss_executive_pay_referendum%2C_2013). According to a recent report,[2] 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 returns](/source/Relative_return).

## See also

- [Executive compensation](/source/Executive_compensation)

- [Say on pay](/source/Say_on_pay)

## References

1. **[^](#cite_ref-1)** ["EIM40015 - Employment Income Manual - HMRC internal manual - GOV.UK"](https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim40015). *www.gov.uk*. Retrieved 2019-01-17.

1. **[^](#cite_ref-2)** Plote, Christine. ["Independent Swiss experts for Executive Compensation"](https://www.agnesblustconsulting.com/products/executive-compensation-report/). *www.plote.de*. Retrieved 2019-01-17.

This economics-related article is a stub. You can help Wikipedia by adding missing information.

- [v](https://en.wikipedia.org/wiki/Template:Econ-stub)
- [t](/source/Template_talk%3AEcon-stub)
- [e](https://en.wikipedia.org/wiki/Special:EditPage/Template:Econ-stub)

---
Adapted from the Wikipedia article [Long-term incentive plan](https://en.wikipedia.org/wiki/Long-term_incentive_plan) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Long-term_incentive_plan?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.