LTIP Long-Term Incentive Vesting 2027 Calculator

Calculate LTIP (Long-Term Incentive Plan) vesting 2027 — performance shares vesting 3-5 years on company TSR vs index. Critical at exec level.

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LTIP Defined

Long-term incentive plan. Vests 3-5 years based on company performance. Common metrics: Total Shareholder Return (TSR), Relative TSR vs index, ROE, EBITDA growth.

Performance Multiplier

Below threshold (often -25% to 0%): payout = 0. Threshold to target: 50-75%. At target: 100%. Above target: 150-200%. Capped to limit dilution.

Forfeiture Risk

If you leave before vest, forfeit ALL. Unlike RSU (proration in some cases), LTIP almost always all-or-nothing for performance shares.

Tax at Vest

Ordinary income at vest (FMV of payout). Same as RSU. Employer typically withholds 22% federal default. Often inadequate at higher brackets.

Source: shrm.org LTIP design surveys, mercer.com executive comp. Last updated: May 2026.