Longterm incentive plans reward employees for longterm successful results. generally come in the way of stock options or profit sharing paid out once a ye term generally refers to result between two and fiye years. Longterm incenti essential for any company that has a plan in place for growth. The long-term i plan can strategically communicate the goal set forth for the employees. It sen message that \"we are a growing company and want you to be a part of it for a | to come". Companies that do not offer longterm incentive programs to their e may be sending the message that they are an unstable company with an unce future. "For most employees. long-term security needs are provided for by the Social Security and Medicare programs. their employer's retirement plan. and continuation of their employer's medical and life insurance plans" (Henderson, sts)