Sixty-one percent of private employers offer long-term incentives while 95 percent provide short-term incentives, according to a recent study by WorldatWork and Vivient Consulting.
The survey also finds that having a long-term incentive plan is common practice across all private for-profit corporations with the exception of partnerships. Although there are challenges regarding valuation and liquidity, long-term incentive use has grown from 35 percent in 2007 to 61 percent in 2011.
“Private companies face unique incentive compensation challenges,” says Kerry Chou, a WorldatWork certified compensation professional and practice leader. “The jump from 35 percent to 61 percent in four years was significant and reflects the need for private companies to compete for senior/executive-level talent with both private as well as publicly traded companies.”
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