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This question is about salaries.
What is LTI compensation?
LTI compensation is Long Term Incentive compensation, a form of variable compensation that an employee earns in the present but which payment comes later and is normally spread out over time.
LTI compensation can come in the form of cash compensation but is more likely to come in stocks, stock options, or profit-sharing plans. These are forms of compensation that an employee earns daily but does not get the compensation benefit until a later date.
Here are some common forms of LTI compensation:
Employee Stock Ownership Plan (ESOP)
Employee Stock Purchase Plan (ESPP)
Incentive Stock Option Plan (ISOP)
Deferred Profit-Sharing Plan (DPSP)
The main objective of companies providing LTI compensation to their employees is to have them remain with the company and have a long-term stake in its overall performance. LTI compensation is perhaps the most common in the compensation packages of executives at companies.
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