There are several kinds of awards that can be made under an Long Term Incentive Plan (LTIP), which are sometimes referred to as Performance Share Plans.
These include:
– nil-cost options
– conditional share awards
– share appreciation rights
– restricted shares.
The awards typically take the form of free shares being offered when certain conditions have been achieved.
LTIPs generally promote long-term staff retention, as multi-year vesting periods can ensure that participants remain with the company throughout the duration of the award. LTIPS also motivate employees to achieve success for the company, to allow their awards to come to fruition.