Long Term Incentive Plan

A reward system designed to improve employees’ long-term performance by providing rewards that may not be tied to the company’s share price. In a typical LTIP, the employee (usually an executive) must fulfill various conditions and/or requirements that prove that he or she has contributed to increasing shareholder value.

Typical incentives include:

• Outright issue of shares.
• Issue of shares conditional upon company or personal performance.
• Bonuses – both monetary and payment in kind.