Deferred Incentive Plans
Long-term incentive awards are primarily used to retain the executive and align the executive and shareholder objectives, and as with the annual incentive plans, awards are often in the form of equity, cash or a combination of both. Deferred incentive plans that strictly pay cash awards may consider the cash award as mimicking stock performance for public institutions, or ROE for private institutions. Regardless, it is imperative that this compensation remain “at risk” and subject to the long-term performance of the institution. MCCA has worked with many institutions in designing compensation packages which take advantage of deferred incentive opportunities.