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[Excerpt] In 2017, companies announced over 50,600 M&A transactions with a total value of over $3.5 trillion. Approximately 80% of these M&A deals fail for a variety of reasons: culture differences, stark operational differences, and budget constraints. Due to the nature of M&A activity, employee LTIPs – which are often made up of stock options, RSUs, and other forms of equity – are the most affected form of compensation during this process. HR and other business leaders should adhere to best practices and due diligence concerning LTIPs to prevent their firm merger, acquisition, or spin-off from becoming another statistic.


Suggested Citation
McAndrew, M., & White, B. (2018). What are some best practices for managing long-term incentive plans (LTIP) during M&A activity and what impact do LTIPs have on employees? Retrieved [insert date] from Cornell University, ILR School site:

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Copyright held by the authors.