Appraisal Economics Inc. valued an outperformance plan (OPP) for a publicly traded REIT for quarterly financial reporting purposes. OPPs and long-term incentive plans (LTIP) are forms of stock-based incentive compensation that allow executives and employees to share in the incremental value created for shareholders by share price appreciation and dividends during a defined performance period. Unlike plain vanilla stock options, OPPs and LTIPs are more customizable, allowing a company to set absolute or relative performance goals. Examples include achieving specified levels of total shareholder return relative to a benchmark stock index or a defined peer group of other publicly traded companies. Appraisal Economics Inc. helps companies design, value, and assess the interim performance of these derivative securities.
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