Equity Incentive Plans

Equity incentive plans, also referred to as equity compensation plans, are legal documents drafted to permit a company to grant one or more types of equity incentives to executives, directors and/or key employees. For public companies, their equity incentive plans are typically drafted as omnibus plans (i.e., they authorize many different types of long-term incentive (LTI) vehicles).

Click the link in the comments to read this article that provides an overview of equity incentive plans, how they work, their role in business, types of awards, implementation considerations, implications of a company’s stage in its life cycle, design considerations and proxy advisor considerations when adopting or administering an equity incentive plan.