Incentive Plan Prevalence
In Digital Organizations [1]
Short Term Incentive Plans
• The majority of companies, both public and private, offer some type of formal Short Term Incentive (“STI”) plan
• Less than half of companies offer an STI plan to all employees
• When STI eligibility is limited, versus available to all employees, most limit to manager level and above
Long Term Incentive Plans
• The majority of companies, both public and private, offer a Long Term Incentive (“LTI”) plan
• Most companies limit LTI eligibility to only some employees
• When LTI eligibility is limited to some, versus all, employees, most companies limit to directors and above or vice president level and above
• The type of LTI offered varies by type of ownership
• Private companies make greatest use of stock options
• Public companies make greatest use of full value shares
• Parent owned and private companies offer a broader range of LTI vehicles
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[1]Based on data compiled in the 2012 Croner Digital Content and Technology Survey