What is ltip?

LTIP stands for Long-Term Incentive Plan, which is a type of incentive compensation plan typically used by companies to reward executives and employees for achieving long-term strategic goals and performance objectives.

LTIPs are designed to motivate and retain key employees by offering them a stake in the company's long-term success. This can be in the form of cash bonuses, stock options, restricted stock units, or other forms of equity-based compensation.

LTIPs are often tied to specific performance metrics such as company profits, stock price performance, or other key indicators of success. These plans typically have a vesting period, which means that employees must stay with the company for a certain number of years in order to receive the full benefits of the plan.

LTIPs are subject to strict regulatory and accounting guidelines, and companies must disclose details of their LTIPs in their financial statements. These plans are also subject to approval by shareholders, who may have concerns about how they align with the company's overall goals and strategy.

Overall, LTIPs can be a powerful tool for aligning the interests of employees with those of shareholders and driving long-term value creation for the company.