LTI, or Long-Term Incentive compensation, refers to the awards given to employees that are designed to incentivize long-term performance and retention. These awards typically vest over a period of time, such as three to five years, and may be in the form of stock options, restricted stock units, or performance shares.
LTI compensation is often used by companies to align the interests of employees with those of shareholders, as the awards are tied to the company's long-term performance and stock price. This can help to motivate employees to work towards achieving the company's strategic goals and objectives.
LTI awards are typically granted to key employees, such as executives and senior managers, but may also be given to other high-performing employees depending on the company's compensation strategy.
Overall, LTI compensation can be an effective tool for companies to attract, retain, and motivate top talent, and help drive long-term performance and success.
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