Just under two-thirds (63%) of European employee respondents are highly satisfied with their long-term incentive plan (L-tip), compared to 42% in North America and 59% in the rest of the world, according to research by the Global Equity Organisation (GEO).
Its Global equity insight 2015 report, which surveyed 144 organisations in 21 countries, of which 40% were from North America, 42% from Europe and 18% from the rest of the world, found that, overall, this equated to 54% satisfaction with L-tips.
Just over a third (37%) of respondents at an executive or management level participate in an L-tip, compared to 21% at middle management level.
The research also found:
- The performance measures that respondents use to help them choose when, and to whom to award L-tips, include profit or earnings (16%), share price (9%) and financial measures (9%).
- 84% of respondents offer an L-tip to senior management.
- 41% roll out L-tips extensively in almost all of their operating countries, while 15% offer it in some countries.
- 31% of respondents from European organisations prefer performance shares as a long-term incentive, whereas 35% of respondents from North America prefer restricted stock.
- A quarter (25%) of North American respondents make long-term incentive grants for staff on a monthly or quarterly basis.
Danyle Anderson, executive director at the Global Equity Organisation, said: “GEO’s Global equity insight 2015 report study offers the most current, comprehensive and detailed insights with regard to global equity-based plans used as long-term incentives for all levels of employees.
”It also gives [employers] the opportunity to assess their current practices and tells how equity-based compensation, despite a high level of regulation, can successfully be aligned with compensation, HR. and corporate strategies.”