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Choice betweenEquity or Cash
Benefits & Compensation
Choice betweenEquity or Cash
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
Does anyone offer employees the choice of accepting an LTI grant in the form of equity or cash?
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Forums  »  Topic Forums  »  Benefits & Compensation  »  Choice betweenEquity or Cash

Choice betweenEquity or Cash

posted at 11/10/2010 6:55 AM EST
Posts: 1
First: 11/10/2010
Last: 11/10/2010
Does anyone offer employees the choice of accepting an LTI grant in the form of equity or cash?

Choice betweenEquity or Cash

posted at 11/10/2010 4:04 PM EST
Posts: 2146
First: 2/15/2006
Last: 9/14/2011
If by LTI, you mean long term incentives, I know many companies that do so...but all are publicly traded. I suggest you talk to an HR consultant who is familiar with exec bnft plans because the laws/rules changed just recently.

Choice betweenEquity or Cash

posted at 11/13/2010 10:06 AM EST
Posts: 2442
First: 2/12/2000
Last: 9/14/2011
An LTI grant that consists of company stock of a public company is the equivalent of cash once vested.

If you are considering LTI as pure cash instead of stock then the executive has a lot less skin in the game. The concept behind most LTI plans is to have this payoff based on having the same risk as the shareholders.

Mnay companies do off a mix of of stock and cash.

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