The 4 Letter Word That Every Private Company Should Know About – LTIP
Long Term Incentive Plans (LTIPs) and Why to Implement
Executive compensation is a nuanced and multifaceted subject that involves a delicate balance between rewarding top talent and aligning their interests with the long-term success of the organization. Typically, executive pay packages consist of three primary components: base salary, annual bonuses, and long-term incentive plans (LTIPs). While base salary and annual bonuses have historically been the most visible and commonly discussed elements of executive compensation, LTIPs are increasingly being recognized as the third and arguably most important leg of the stool.
LTIPs serve as a tool for aligning the goals of executives with those of the company over the long term, offering rewards that are tied to the sustained growth and profitability of the organization. As businesses evolve and face growing challenges, LTIPs have become a central component in shaping how executives are compensated, ensuring they remain focused on creating long-term shareholder value.
Over the past 75 years, LTIPs have been a common feature in public companies, where stock options, performance shares, and other equity-based incentives align executives with shareholder interests. It hasn’t been until the past couple of decades that private companies have implemented LTIPs to align executives' interests with the long-term success of the company, but also almost out of necessity to compete for the same talent who might already possess an LTIP as part of their compensation.
What Are Long-Term Incentive Plans (LTIPs)?
Long-Term Incentive Plans (LTIPs) are compensation structures designed to reward executives for achieving long-term business goals. Unlike annual bonuses, which are typically tied to short-term financial metrics, LTIPs are structured to reward performance over a longer time horizon—usually three to five years or more. The primary purpose of LTIPs is to ensure that executives are motivated to focus on sustainable growth, value creation, and the long-term health of the company.
The Factors Driving the Adoption of LTIPs in Private Companies
According to a survey by WorldatWork, approximately 63% of private companies are using LTIPs as a means of rewarding executives and aligning their interests with the company’s long-term success. Several factors have contributed to the rise in popularity of LTIPs in private companies, ranging from the quest for competitive advantage to changes in organizational dynamics and evolving employee expectations. But the following reasons might shed additional insight:
- Companies with LTIPs Have 30% Higher Revenue Growth: Research by the National Center for Employee Ownership (NCEO) found that companies that implement equity-based LTIPs experience 30% higher revenue growth compared to those that do not. The statistic underscores the positive impact of LTIPs on a company’s overall performance, as they drive executive focus on achieving goals that lead to sustained revenue growth, innovation, and market expansion.
- 91% of Executives in Private Companies Cite LTIPs as Key to Retention: A survey by Korn Ferry found that 91% of executives in privately held companies consider LTIPs an essential factor in their decision to stay with the company. The statistics demonstrate the significant role LTIPs play in retaining key talent, ensuring that executives are motivated to stay with the company over the long term. By offering equity-based compensation, companies can reduce turnover and keep their leadership team focused on long-term objectives.
- Companies With LTIPs Are 50% More Likely to Meet Exit Targets: According to a report by Bain & Company, private companies that implement LTIPs are 50% more likely to meet or exceed their exit targets during mergers, acquisitions, or initial public offerings (IPOs). By aligning executives' interests with long-term value creation, LTIPs motivate leadership to work toward achieving the performance metrics that will maximize the company’s value at the time of sale or public offering.
- Transitioning Ownership and Succession Planning: For family-owned businesses or privately held companies with a significant ownership stake held by a small group, succession planning is another critical factor in the decision to adopt LTIPs. As the company grows and the leadership team evolves, there may be a need to transition ownership to new management. LTIPs can help retain key executives during this period of change, providing financial incentives that keep the team focused on the company’s long-term growth even during periods of uncertainty.
As businesses strive to remain competitive and evolve in an increasingly dynamic marketplace, the adoption of LTIPs has evolved as a key driver for optimizing performance. No longer limited to public companies; private companies have increasingly recognized the benefit and need for these compensation structures. Perhaps adding these 4 simple letters (L-T-I-P) to a company’s compensation program could be the difference maker that they’ve been looking for.
Vice President & Chief Human Resources Officer ABOUT THE COMPANY With roots dating back to 1938, The Papé Group is the West’s leading supplier of capital equipment solutions. Today, Papé operates across nine states with over 4,000 team members, proudly representing premier brands including John Deere, Kenworth, Hyster, Ditch Witch, and more. What sets Papé apart is its commitment to long-term relationships, both with customers and employees. As a fourth-generation, family-led business, Papé believes in the value of a handshake, the importance of service, and the impact of leadership that stays close to the work. ABOUT THE POSITION Reporting to the CEO of the Papé Group and residing in Eugene, Oregon, the VP & Chief Human Resources Officer (CHRO) serves as the organization’s senior leader responsible for developing and executing a people strategy that supports business performance, operational excellence, and a strong employee experience across a geographically dispersed, multi-site workforce. This leader will bring exceptional integrity, discretion, loyalty, and sound judgment, while building trust and credibility at every level of the organization—from frontline employees to executive leadership. The VP & CHRO will balance the operational needs of the business with employee engagement and workforce stability, ensuring the organization remains compliant, competitive, and well-positioned for growth. This role leads all HR functions, including labor relations, safety, recruiting, benefits, payroll, HRIS, onboarding, training, and performance management, while also serving as a key strategic partner in mergers and acquisitions and regular interactions with the company’s board. Essential Duties and Responsibilities Strategic Leadership & Culture Lead the continued development and execution of the company’s enterprise-wide HR strategy in alignment with business objectives, operational needs, and long-term growth plans. Serve as a trusted advisor to the CEO and executive leadership team on workforce planning, organizational effectiveness, leadership development, and employee relations. Champion a culture of integrity, accountability, respect, and performance while ensuring employees feel heard, supported, and engaged. Establish and maintain consistent HR practices across multiple locations and states while allowing for local operational needs. Compliance, Risk Management & Employment Law Ensure legal compliance across all employment-related areas, including wage and hour laws, payroll practices, employee classification, leaves of absence, and workplace policies. Partner with legal counsel and internal stakeholders to mitigate risk and ensure consistent application of employment law across 17 states. Oversee safety program alignment and compliance, ensuring workplace safety expectations are embedded into operational leadership and accountability. Lead investigations and resolution of complex employee relations matters with professionalism, confidentiality, and fairness. Total Rewards, Benefits & Retirement Plans Oversee benefits strategy and administration, including medical, dental, vision, disability, leave programs, and wellness offerings. Lead negotiation and management of benefits contracts and vendor relationships to ensure competitive offerings and cost effectiveness. Provide executive oversight for the company’s 401(k) plan, including vendor relationships, fiduciary compliance, plan governance, and employee communication. Partner with finance and executive leadership to manage labor and benefit costs while supporting retention and workforce stability. HRIS & HR Operations Develops and executes the HR technology strategy in collaboration with the CIO and CFO. Responsible for the HRIS vendor relationship, including selection, contract negotiation, implementation, optimization, and performance management. Ensure HR processes are efficient, scalable, compliant, and aligned across recruiting, onboarding, payroll, performance management, and reporting. Use metrics and workforce analytics to guide decision-making and improve outcomes. Talent Acquisition, Onboarding & Workforce Planning Oversee recruiting strategy and execution for hourly, salaried, leadership, and specialized roles across a multi-state footprint. Ensure onboarding processes are consistent, high-quality, and designed to improve early retention and productivity. Build workforce planning processes that support operational demands, business growth, and succession planning. Training, Leadership Development & Performance Management Recommend, select, and implement training programs for supervisors and managers, including: compliance training (harassment prevention, wage/hour, safety, union-related training) leadership and soft skills training (communication, coaching, accountability, conflict resolution) Establish leadership development practices that strengthen frontline leadership capability and reinforce company standards. Ensure performance management processes are practical, consistently applied, and drive accountability and employee development. Serves as a key advisor in helping guide and develop members of the emerging fifth generation, supporting thoughtful career pathing, leadership development, and integration into the business in alignment with company values and performance expectations. Mergers & Acquisitions (M&A) Lead HR due diligence and integration planning for mergers, acquisitions, and organizational growth initiatives. Evaluate workforce risks, compensation and benefits alignment, union implications, compliance exposure, and retention strategies. Drive integration of HR policies, culture, systems, and talent while maintaining business continuity and employee trust. Labor Relations & Union Negotiations Lead union strategy, labor relations, and negotiations, including preparation, bargaining, grievance management, and contract administration for approximately 100 employees. Maintain productive relationships with union representatives while protecting business continuity and operational flexibility. Provide guidance and coaching to leaders on union-related issues, discipline, and compliance with collective bargaining agreements. Team Leadership & Department Management Lead and develop a high-performing HR organization with functional responsibility for: Safety Recruiting Payroll Benefits HRIS Onboarding Performance Management Employee Relations Establish clear expectations, accountability, and development pathways for HR team members. Manage departmental budget, vendor performance, and service-level expectations. CANDIDATE PROFILE The ideal candidate brings a proven track record of executive leadership, strategic decision-making, and operational excellence within complex, growth-oriented organizations. Key qualifications include: Executive-level HR leadership experience in a multi-location, multi-state organization. Demonstrated success in building credibility with frontline employees and leaders at all levels. Strong working knowledge of employment law, wage and hour compliance, payroll practices, and workplace safety standards. Proven experience negotiating and managing vendor contracts, including HRIS, benefits providers, and retirement plan partners. Strong leadership training and development experience for supervisors and managers (compliance and soft skills). Robust M&A experience, including HR due diligence, integration, and organizational change management. High degree of integrity, discretion, loyalty, and sound judgment. Excellent communication, relationship-building, and conflict resolution skills. Preferred SPHR, SHRM-SCP, or similar credentials. Labor relations experience, including union contract negotiation and administration. Experience in distributed operations such as manufacturing, construction, industrial services, transportation, equipment, logistics, or other field-based environments. Demonstrated success scaling HR operations in a high-growth or acquisition-driven environment. Interested in Learning More? 180one is an executive search firm and is assisting Papé Group in this search. If interested in learning more about the opportunity, please contact Tom Haley / 503-334-1350 / tom@180one.com .
Sales Leader ABOUT THE COMPANY Organically Grown Company (“OGC” or the “Company”) is a leading organic produce distributor in the Pacific Northwest, committed to connecting growers, retailers, and consumers through a transparent, sustainable supply chain. As a mission-driven organization, OGC has built its reputation on deep grower partnerships, operational excellence, and an unwavering commitment to organic integrity. The Sales Leader will play a critical role in driving revenue growth, strengthening customer relationships, and leading a high-performing sales organization aligned with OGC’s values, strategic priorities, and long-term vision. ABOUT THE POSITION Reporting to the VP of Sales & Sourcing, this Sales Leader is responsible for and focused on ensuring the highest service levels for our customers. They are focused on leadership of the sales team, ensuring development, performance, morale, and retention. They provide primary leadership over product, pricing, actionable analytics, and promotions as main strategies to manage inventory and drive sales and profit. DUTIES & RESPONSIBILITIES Leading & Supervisory: Promote the development of flexible, adaptive, and innovative processes for use in new business growth by supporting and enabling an effective and efficient team approach. Provide leadership of the day-to-day operations of the sales department, while maintaining focus on the Company’s strategic goals. Promote safety, development, training, and evaluation of all sales team members. Collaborate organization-wide to support or lead projects and initiatives, facilitate process change, manage organizational change, and ensure success. Ensure proactive and effective collaboration and communication with all other departments for greater efficiency in support of service goals. Ensure proper levels of people growth and succession planning are in place and actively updated and refreshed. Foster a culture of belonging where people feel engaged and inspired. Support OGC sustainability goals and actively work to reduce environmental impact. Nurture, support, and promote the Company Mission, Values & Vision, and Brand. Exemplify OGC values: Cultivate Connection, Win on Service, Build Trust, and Move with Intention. Sales & Service: Develop and implement sales strategies, using analytics to set sales targets and provide guidance on associated sales actions, and forecast sales volume for both existing and new products. Develop and maintain a historical perspective on the marketplace to analyze and predict future trends and needs. Maintain familiarity with competitors’ products and services. Recommend changes in products, services, and sales policies by evaluating results and competitive developments. Stay current with new products and services offered by competitors, and with other trends in the organic produce industry. Develop and implement account management objectives, including key service metrics. Manage the negotiation of products with customers based on margin goals, which may include providing volume discounts or other agreements. Partner with the business development team to create onboarding plans for new business/new partnerships and grow existing accounts. Develop and sustain a sales culture of service & customer value creation. Develop and coordinate programs and processes for industry-leading customer service and sales to increase customer satisfaction, as measured with a trade survey annually. Work closely with Sourcing leadership to align demand planning and inventory strategies with sales growth. Responsible for developing and maintaining customer, grower, and vendor relationships. Travel as needed to meet with customers, attend and host at industry events, and nurture relationships. Analyze lead quality and sales trends to continually refine outreach strategies. Planning and Budgeting: Own budgeting, forecasting, and sales planning for the team. Manage the operational budget through a collaborative approach. Measure sales activities by developing key sales metrics, and ensure that these metrics are analyzed, reported on a regular basis, and adjusted accordingly to achieve OGC sales goals and objectives. Set departmental objectives and goals to align with OGC’s strategic plan, annual goals, and company initiatives. Provide strategic leadership for the future direction of the OGC Sales team in support of the OGC strategic plan and growth initiatives. QUALIFICATIONS 10+ years of progressive & successful sales experience, with at least 5+ years managing and coaching sales teams to meet and exceed sales goals. Preference for a deep understanding of the produce industry, including supply chain logistics, product characteristics, and quality control. Strategic planning and pricing experience. Strong knowledge of the channels of distribution of perishable products or related industries. Exceptional presentation, written and oral communication skills. Experience in fiscal management, including P&L’s, budgets, projections, cost control skills, and a proven track record of revenue generation and strong customer relationships. Excellent management and organizational skills with the ability to prioritize and manage multiple projects concurrently. Interested in Learning More? 180one has been retained by OGC to manage this search. If interested in learning more about the opportunity, please contact Lisa Heffernan / 971.256.3076/ lisa@180one.com .
Each year, 180one presents our Year in Review, sharing our insights into the overall executive talent market and recapping the work we performed on behalf of our clients throughout the year. To explore what we saw in years’ past, check out the Year in Review section of The Water Cooler.
