Want to maximize your financial gains? Learning the key terms and concepts behind these programs is the difference between getting a good deal or potentially missing out. In this episode, we’ll break down the jargon that can make or break your success in negotiations. Terms like LTIP (Long-Term Incentive Plans), STIP (Short-Term Incentive Plans), KPIs (Key Performance Indicators), warrants, strike prices, and vesting schedules might sound complex, but understanding them is essential. We’ll also cover important clauses like clawback provisions, and explain terms like cliff vesting, linear vesting, and the critical difference between being a Good Leaver vs. Bad Leaver Plus, we’ll show how timing—being "in the money" or exercising options—can greatly impact your earnings.

Why It's Important to Learn This Lingo:

Negotiating an incentive program might feel overwhelming, but it’s crucial to know what you’re agreeing to. These terms aren’t just legal jargon—they directly affect your earnings, your control over your financial future, and your long-term financial success. By mastering this language, you gain confidence and clarity, ensuring that you can ask the right questions and avoid leaving money on the table. Whether you’re negotiating stock options, performance bonuses, or a new compensation package, understanding these terms gives you a significant advantage.

What You’ll Learn:

1. LTIP, STIP, and Vesting: What You Need to Know:
We'll make sense of long-term and short-term incentive plans, and show how different vesting options, like cliff vesting and linear vesting, can impact your payouts.

2. Good Leaver vs. Bad Leaver: What It Means for You:
Knowing whether you're considered a good or bad leaver can change how much you take home if you leave a company. We’ll break it down so you’re never caught off guard.

3. How This Knowledge Can Boost Your Financial Future:
The more you know, the better you can protect your financial interests. Understanding these terms gives you the leverage to negotiate for a better deal that supports your long-term goals.

Key Topics Covered:

1. The Power of Business Law in Negotiations:
Knowing the right terms helps you negotiate confidently and get a better deal on your incentive program.

2. Maximizing Your Earnings:
Understanding how your incentive program is structured can help you avoid costly mistakes and take full advantage of what's on offer.

3. Cliff Vesting vs. Linear Vesting Explained:
We'll simplify these two vesting methods so you can choose the one that aligns best with your financial goals.

Why This Matters:

When you’re negotiating an incentive program, you’re not just talking numbers—you’re shaping your financial future. By understanding key terms and concepts, you can confidently enter negotiations, knowing you have the tools to secure the best deal possible. Don’t leave money on the table—watch this episode and get the knowledge you need to succeed!

Watch now and take control of your future by learning the lingo that matters!

Also watch our incentive program masterclass:
Master Incentive Programs I A Business Lawyer's Guide
[ Ссылка ]

Time stamp:
00:23 STIP
00:33 LTIP
00:45 Vesting
01:04 Cliff vesting
01:22 Linear vesting
02:00 Bad leaver
02:39 Claw back
03:09 KPI
03:48 Lock- Up
04:19 Warrants
04:30 Synthetic options
04:50 Exercise price
05:09 Strike Price
05:15 Exercise period
05:34 Strike period
06:00 In the money

#IncentivePrograms #LTIP #STIP #Vesting #KPIs #Warrants #StrikePrice #InTheMoney #ExercisePeriod #CliffVesting #GoodLeaver #BadLeaver #Clawback #BusinessLaw

This video is not intended to provide legal advice, financial advice, or any other individual or general advice. Content provided on this Youtube channel is for thought provocing, insight sharing and entertainment purposes only. Please consult with a lawyer, finacial advisor, tax advisor or other appropriate professional regarding any legal or financial issues Information on this Youtube channel should not be considered as a substitute for advice from a lawyer or other professional. The statements made about scenarios are only to illustrate different outcomes and it should be stressed that they are high level and general and can, as such, not be transposed into a real situation.

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