Cash Incentive Use Increases

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    The use of cash-based long-term incentives (LTI) as part of employee compensation programs has increased significantly around the globe, says a survey by Buck Consultants, A Xerox Company. For example, since 2012 cash LTI awards have increased from nine per cent to 18 per cent in Canada, six per cent to 18 per cent in the UK, seven per cent to 18 per cent in France, and 10 per cent to 14 per cent in the U.S. The annual ‘Global Long-Term Incentive Practices Survey’ shows full-value awards remain the most prevalent vehicle, with the most value being delivered in the form of time-based restricted stock/units. It also found stock options have continued to decline in use and retention is now the most often cited reason for making off-cycle grants.