Apa yang dimaksud dengan kompensasi insentif jangka panjang?

Long-term incentive compensation (LTIC) is a performance-based reward system designed to motivate sales representatives to achieve sustained organizational goals over an extended period, typically beyond one year. It aligns employee interests with those of the company, driving performance and fostering loyalty. LTIC is often used for sales reps and senior executives to encourage long-term success and accountability.

What are the types of long-term incentive compensation?

LTIC plans can take various forms, tailored to organizational needs and roles. Common types include:

• Stock options: Sales representatives are given the right to purchase company shares at a predetermined price after a specific period.

• Restricted stock units (RSUs): Shares are granted but only become fully owned by sales representatives after meeting certain conditions, like tenure or performance milestones.

• Performance shares: Rewards are tied directly to achieving specific performance metrics over time.

• Cash-based plans: Bonuses are awarded based on long-term achievements, often linked to financial or strategic targets.

• Deferred compensation plans: A portion of the SDR's earnings is deferred for future payment, typically linked to company performance.

How can Compass help in managing long-term incentive compensation?

Compass simplifies and optimizes the management of long-term incentive compensation plans in several ways:

• Automated tracking and calculations: Reduce manual effort by automating reward calculations based on performance data.

• Customizable plans: Tailor LTIC programs to align with your organization’s unique goals, metrics, and budget.

• Real-time performance insights: Provide sales representatives and managers with dashboards to track progress towards long-term goals, fostering transparency.

• Compliance management: Ensure adherence to tax and legal regulations, reducing compliance risks.

• Seamless integration: Integrate with existing HR and payroll systems to simplify rewards administration.

At Compass, we specialize in helping businesses design and manage impactful incentive programs. Our platform is built to handle the complexities of LTIC with ease, ensuring that your organization can focus on what truly matters—driving long-term success. Let Compass empower your team to achieve sustained excellence with streamlined, transparent, and fair long term incentive compensation. Schedule a call now!