What is non equity incentive compensation?

Non-Equity Incentive Compensation means any variable cash compensation paid to a Covered Executive, wholly or partly based on publicly reported financial information related to the Company or one or more of its subsidiaries.

What are the four forms of executive compensation?

According to the Center on Executive Compensation, “Executive pay arrangements typically consist of six distinct compensation components: salary, annual incentives, long-term incentives, benefits, perquisites and severance/change-in-control agreements.”1 See High-Performing Companies Pay Executives Differently.

What are the types of compensation?

Different types of compensation include:

• Base Pay.
• Commissions.
• Overtime Pay.
• Bonuses, Profit Sharing, Merit Pay.
• Stock Options.
• Travel/Meal/Housing Allowance.
• Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes…

What does it mean to have non-equity incentive compensation?

Non-Equity Incentive Compensation means any variable cash compensation that is issued under any Company plan or agreement and that is granted, earned or vested based wholly or partly on publicly reported financial information related to the Company or one or more of its subsidiaries.

How are non equity based incentive plans different from equity based LTIPs?

Like equity-based LTIPs, these plans are strong retention tools due to multi-year or longer-term reward payouts. But since these plans are not tied to stock performance, employees usually have more control over payouts. Non-equity based plans can take several forms, such as:

What does equity compensation mean for an employee?

Equity compensation may include options, restricted stock, and performance shares; all of these investment vehicles represent ownership in the firm for a company’s employees. Equity compensation allows the employees of the firm to share in the profits via appreciation and can encourage retention, particularly if there are vesting requirements.

What’s the difference between equity and non cash pay?

Equity compensation is non-cash pay that is offered to employees, including options, restricted stock, and performance shares. LinkedIn with Background Education