Long-Term Incentive Plan - LTIP

It’s how you want to pay workers, employees, vendors, and more or less anyone you do business with. Pay them like a hot dog street vendor, and they’re incentivized to transact fast. Right now.

That hot dog made you sick an hour later? Who cares? (Other than you.) The vendor has long since disappeared. You likely couldn’t even find him if you wanted to.

But a union group of workers running the cardboard boxing plant? Well, if you think long-term, you want to keep the smart ones engaged and happy and hungry...and you want the bad ones to quit or get managed out. You want them to think like co-owners and partners, not like hot dog vendors in Manhattan.

Maybe give them a share of profits from their group or division. Maybe also give stock options with different vest provisions or in different volumes, based on how well they perform.

It’s a lot of effort to track and trace and make the metrics work out. But it’s usually worth it.