Long Term Incentive Plan Design amid Market Uncertainty

Content Team February 6, 2020 mins read

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Global Shares’ Content Team comprises a dynamic and talented team of writers and experienced professionals who strive to deliver useful equity insights and simplify complex equity information, all with the aim of helping you to better understand equity management.

Long Term Incentive Plan Design amid Market Uncertainty

The goal of any executive compensation program is to align pay with performance.  Management and Boards strive to achieve that alignment through careful plan design and by selecting equity vehicles and performance measures that are most appropriate for their company and their industry.

However, stock options will always present an inherent degree of risk. Stock markets fluctuate, and the global economy can impact the value of your employees’ stock. Facing this uncertainty is less than ideal when the reality is that a stock market correction can result in your long-term financial-based performance goals could becoming obsolete in the first year.

Companies that fail to account for market uncertainty may find themselves facing a failure of alignment between their stock’s performance and the intended benefits of long-term incentive awards which ultimately is the primary purpose of employee ownership.

Fortunately, there are best practices in plan design that companies can incorporate when faced with market uncertainty.  This webinar focuses on these practices, and how they can make your plan design robust in the face of turbulent stock markets.

Topics covered include;

  • Stable value awards
  • Unstable value awards
  • Responsive awards
  • Approaches to mitigate the impact of higher market volatility

To view the webinar, please fill in your details below:

Click here to read more about Long term incentive plans and how we can help you.


Please Note: This publication contains general information only and Global Shares is not, through this article, issuing any advice, be it legal, financial, tax-related, business-related, professional or other. The Global Shares Academy is not a substitute for professional advice and should not be used as such. Global Shares does not assume any liability for reliance on the information provided herein.

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