The Difference Between Long Term & Short Term Incentive Plans

The Difference Between Long Term & Short Term Incentive Plans

Nichole Gunn

Signs showing short term and long term incentive plans, each pointing in a different direction

The difference between long term and short term incentive plans is 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:

The Difference Between Long Term & Short Term Incentive Plans