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Equity Incentive Plan

A term sometimes used to denote a performance share plan in which the payout of awards varies according to actual performance against the plan's stipulated metric(s). For this type of plan, there is usually a target award size, and the participant receives more or fewer shares, on a sliding scale, depending on results measured at the end of the period. This contrasts with performance-based grants that give a fixed number of shares when vesting occurs. Companies and consultants use these terms in different ways. See the section Performance Shares for details.

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