Optimizing Long-term Incentive Plans



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Figure 29 Percentage that stays the same compared to the actual plan versus excess ranking. The upper two figures is the normal situation and model 2 without model 4 and on the lower two is the normal situation and model 2 with the use of model 4.



Table 8 No change in ranking number compared to actual plan in %

starting date

normal situation

model 2 - least squares

model 4 - normal situation

model 4 + model 2 - least squares

model 3 - least squares

model 4 + model 3 - least squares

1

84.32

91.76

88.24

94.20

83.29

85.31

10

58.52

71.92

67.92

80.44

58.29

70.40

30

44.32

57.36

54.00

66.20

45.86

55.00

60

35.60

48.56

46.00

56.80

35.70

46.86





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