What is 'long-term incentive' in SAP ORG-LX-T9N - Team: Corporate Translation?

long-term incentive - Overview

• Component: ORG-LX-T9N

• Component Name: Team: Corporate Translation

• Description: A variable component of Executive Board compensation.

long-term incentive - Details

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  Key Concepts: 
  Long-term incentive is a type of compensation that is designed to reward employees for their long-term commitment to a company. It is typically offered in the form of stock options, restricted stock units, or performance-based awards. These incentives are intended to motivate employees to stay with the company for an extended period of time and to help them build wealth over the long term. 
  
  How to use it: 
  Long-term incentive plans are typically offered as part of an overall compensation package. Companies may offer these incentives in addition to base salary, bonuses, and other forms of compensation. Companies may also offer long-term incentives as part of a retention strategy, in order to encourage employees to stay with the company for an extended period of time. 
  
  Tips & Tricks: 
  When considering a long-term incentive plan, it is important to understand the terms and conditions associated with the plan. It is also important to understand the tax implications of any long-term incentive plan, as these can vary depending on the type of plan and the country in which it is offered. 
  
  Related Information: 
  The U.S. Securities and Exchange Commission (SEC) has issued guidance on long-term incentive plans, which can be found on their website. Additionally, many countries have their own regulations regarding long-term incentive plans, which should be taken into consideration when designing a plan.