Long-term incentive plan

You pick those moments, you know, when you're going to splurge and when you're going to pull back, when you're going to be more conservative, when you're going to do something that is, is seemingly crazy and wild and risky, you know, and, and I think I have crazy wild ideas and sometimes I'm brilliant and sometimes I'm not.

And so I, I rely on my team also to say, okay, that's a really good idea let's go for that and that is too risky or too crazy but you know if you don't risk anything i always say this like i was trying i'm trying to get this woman to come work with us and she was talking about her very steady job and i said and she kept talking about how she really wants to make money needs to make money needs to make money for her family and i said so you're gonna go up by like five thousand dollar increments for the rest of your life or you could take a risk where you're still getting paid the same salary and yes you're leaving some like What are they called? LTIP, like these bonus things on the table that are worth like $100,000.

And I get that.

That's a lot of money.

We had Stephanie Boyd, EVP at Shell, Anne Engerman, who was VP Reward and Mobility at Vestas.

I would say that When you look at the data, and certainly here, I think gave a good overview, that actually US quantum at least continues to accelerate away from the European peers, especially in terms of LTIP provision.

And some of the structural aspects of US packages, such as one I would call bumper incentive awards, at-will employment, more frequent new bad leave of provisions, they are still firmly on the other side of the Atlantic.

But there is some evidence of a structural reposition when you have employees who are working or have previously worked in the US and where there's a kind of cultural desirability to have that differentiation.

in Asia.

We had some practitioner examples in Europe that were moving in two different directions.

Halion have continued to adopt an ESG qualifier, for example, which impacts the financial metrics of any of their LTIPs.

And there are remaining ambitions in Halion, such as reducing petroleum-based plastic packaging, which very much feature in the HR moral proposition.

And in a business where a lot of people don't stick around for five years, I mean, half our employees are pilots and pilots jump from not all, but a lot of them jump from job to job and opportunity to opportunity where the industry's at.

And so then Corey and I and the team got together, but with Corey's lead and said, Hey, to get there, we've got to come up with an employee LTIP plan, long-term incentive plan, right? That's the, we're going to need this kind of work.

We're going to need to buy in.

And so that was really derived.

So it's something that we constantly talk about.

I think it's been really a great thing and it feels good for me to do it for the company, for these people that have bust their ass for us for many years and many more years to come.

So Corey hit on the LTIP plan, which was a new ad, but that's just that extra piece, the foundation of our comp, you know, this is where Corey and I do a lot.

We always push back against like a higher salary and no performance expectation.

going to nerd about this, but this is great.

Because I think when it comes to that, you know, STI, I know you get me excited around STIs, but I think somehow this has been one of the, I feel, pitfalls of both LTI plans and STI plans has been this strange thing of short-term, long-term.

So I've seen so many designs around both STI plans and LTI plans that I think failed because of the way people act based on them.

So if you have enough executives... that know that they need to meet a certain number for the full year to get their SDI payout because it's all about profit margin or whatever it might be.

They may take the wrong choices at the end of the year.

It drives behavior.

You get what you asked for, right? Yeah, yeah, yeah.

And I think it's notoriously difficult, and especially LTI plants.