Long-Term Incentive Plans (LTIPs)

Long-term incentives plans (LTIPs) typically include:

• Equity-based plans for granting stock options, restricted stock, restricted stock units and stock appreciation rights
• Performance-based equity programs for granting performance units or performance shares
• Cash-based programs designed to reward achievement of multi-year business goals

DolmatConnell & Partners' LTIP design includes analyses from the perspectives of the company, employees and investors, and incorporates the extensive tax, accounting and securities expertise of our team.

Given the changes driven by mandated stock-option expensing under FAS123R, and the new SEC proxy disclosure rules, the LTIP landscape is changing rapidly. Companies need to carefully consider the short-term and long-term implications of LTIP changes. Our analyses include the development of an ongoing strategy that takes FAS123R into consideration.

DolmatConnell & Partners will explore the changing trends in the use of each long term incentive instrument, including terms and conditions. We will also:

• Examine the tax and accounting impact of each instrument and the overall plan.
• Review the company's share utilization to form overhang and run rate recommendations.
• Work with Institution Investor Services (ISS) and Glass Lewis to review and model your plans before submitting them to shareholders for approval.
• Work with your legal counsel to review and design plan documents.
• Assess your current LTIPs.
• Provide recommendations for the design of ongoing LTIPs.