What is long-term incentives in SAP PA-EC - Enterprise Compensation Management?

SAP Term: long-term incentives

• Component: PA-EC

• Component Name: Enterprise Compensation Management

• Description: A component for defining the long-term compensation plans in your company and for describing how the compensation is allocated and h andled.

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• Key Concepts: 
  Long-term incentives are a type of compensation offered by employers to reward employees for their long-term commitment and performance. This type of incentive is typically offered in the form of stock options, restricted stock units, or performance shares. The SAP PA-EC Enterprise Compensation Management component helps employers manage their long-term incentive plans. 
  
  How to use it: 
  The SAP PA-EC Enterprise Compensation Management component provides employers with the tools to design, manage, and administer their long-term incentive plans. It allows employers to set up and track performance goals, manage vesting schedules, and calculate payouts. It also provides reporting capabilities to help employers monitor the progress of their plans. 
  
  Tips & Tricks: 
  When setting up a long-term incentive plan, it is important to consider the goals of the plan and how they will be measured. It is also important to consider the vesting schedule and how it will affect employee motivation. Finally, it is important to ensure that the plan is compliant with applicable laws and regulations. 
  
  Related Information: 
  For more information on long-term incentives and the SAP PA-EC Enterprise Compensation Management component, please visit the SAP website at https://www.sap.com/products/enterprise-compensation-management.html.