Long Term Incentive Plans (LTIPs) are a way of rewarding key employees as an extra incentive to retain them in your business in return for them helping increase your shareholder value. LTIPs are found in public companies and owner managed or private equity owned businesses. While a key employee can get shares or share options in a publicly quoted business, the LTIP lets privately owned businesses reward their key employees in a similar fashion without necessarily having an equity component. Often in owner managed businesses, the owner does not want to release equity. However, they recognise that some of their…