Long-term Incentive Plan (LTIP)

A Long-term Incentive Plan (LTIP) is a compensation strategy used by companies to motivate and retain executives and key employees. It offers rewards—such as stock options, shares, or cash—based on the company's performance over several years. The idea is to align employees’ interests with the company's long-term success, encouraging them to focus on sustainable growth rather than short-term gains. Typically, LTIPs are structured with specific targets and conditions that must be met before the incentives are awarded, ensuring commitment to the company's future prosperity.