The following Share Incentives practice note Produced in partnership with Jeremy Edwards of Baker McKenzie provides comprehensive and up to date legal information covering:
A long-term incentive plan (LTIP) is a term that is commonly used among listed companies to describe executive share plans under which a company makes share based awards to senior employees with a vesting period of at least three years.
To meet institutional shareholder voting requirements (where shareholder approval is required), awards are usually made subject to the achievement of specified performance targets. Where the LTIP has stringent performance conditions, companies sometimes call their LTIP a performance share plan (PSP).
Another name for an LTIP that has been used commonly in the past is a restricted share plan.
For companies listed on the London Stock Exchange, there is a specific definition of long-term incentive scheme in the Financial Conduct Authority (FCA) handbook. See Specific definitions below.
The term LTIP is sometimes used in a broader context to describe any incentive arrangement, including cash bonus schemes, operating over more than one year. The meaning within the broader context should not be confused with the meaning of an LTIP used more generically to describe share incentive arrangements usually targeted at senior executives of listed companies and detailed in this Practice Note.
The LTIP became the predominant vehicle for the making of longer term executive share incentive awards to FTSE 100 and 250 companies, and effectively replaced executive option plans (under which options are granted with
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
The principle of transferred maliceIf a person has a malicious intent towards X and, in carrying out that intent, injures Y, he is guilty of an offence. So, if D shoots at A with intent to kill him but kills B by mistake it is murder; the mistake as to the identity of the victim is irrelevant as D
ContractWhere a contract is made by two or more parties it may contain a promise or obligation made by two or more of those parties. Any such promise may be:•joint•several, or•joint and severalWhether an undertaking is joint, several, or joint and several in contract is a question of construction
You may apply simplified customer due diligence (SDD) measures in relation to particular business relationships or transactions which you determine present a low risk of money laundering or terrorist financing, having taken into account:•your organisation-wide risk assessment—see Practice Note:
Brexit: The UK's departure from the EU on exit day ie Friday 31 January 2020 has implications for practitioners dealing with provisions in the CPR relevant to cross border matters, including CPR 5.4C (discussed below). For guidance on the impact of Brexit on the CPR, see Cross border
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.