The Difference Between Long Term & Short-Term Incentive Plans

The Difference Between Long Term & Short-Term Incentive Plans

Nichole Gunn

difference between long and short term incentive plans

The difference between a long-term and short-term incentive plan. . . it’s a little more complicated than “one is long, one is short.” There are some incentive plan goals and incentive rewards that are better suited to one or another. This is important to keep in mind, particularly if you want to build multiple shorter incentive programs and promotions within one larger, overarching, long-term incentive plan. Let’s break it down:

difference between long and short term incentive plans