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Tips and Advice

Developing a short term reward is pretty straight forward: calculate the potential incentive based on the desired results, monitor, evaluate and pay out. The long term reward system is more complicated.

Consider creating a long term reward system that pays out in three to five years with an additional discretionary percentage payout per year for the executives reaching their goals. The additional discretionary payout is deferred until the executive retires from your company, and only at retirement.

Evergreen Financial Quarterly
November, 2005

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