Performance Unit Plans
A nonqualified Performance Unit Plan is a medium- to long-term incentive plan offered to key executives. Performance Units accrue for each participant and are valued based on predetermined financial objectives.
These plans greatly enhance the ability of private companies to compete with public companies by offering performance-driven long-term incentives to key executives.
- Align interest of executives with those of the organization
- Promote team-work
- Provide supplemental retirement income for key executives without diluting ownership of the organization
- Encourage retention