{"id":1197,"date":"2026-04-28T10:39:34","date_gmt":"2026-04-28T08:39:34","guid":{"rendered":"https:\/\/dialog-unlocked.ch\/phantom-options-in-sme-and-start-ups-practice-considerations\/"},"modified":"2026-04-30T15:11:51","modified_gmt":"2026-04-30T13:11:51","slug":"phantom-options-in-sme-and-start-ups-practice-considerations-2","status":"publish","type":"post","link":"https:\/\/dialog-unlocked.ch\/en\/phantom-options-in-sme-and-start-ups-practice-considerations-2\/","title":{"rendered":"LTI vs. Bonus: The Most Important Differences Explained"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-bottom:33px;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"max-width:1248px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\" style=\"--awb-bg-blend:overlay;--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;\" data-motion-effects=\"[{&quot;type&quot;:&quot;&quot;,&quot;scroll_type&quot;:&quot;transition&quot;,&quot;scroll_direction&quot;:&quot;up&quot;,&quot;transition_speed&quot;:&quot;1&quot;,&quot;fade_type&quot;:&quot;in&quot;,&quot;scale_type&quot;:&quot;up&quot;,&quot;initial_scale&quot;:&quot;1&quot;,&quot;max_scale&quot;:&quot;1.5&quot;,&quot;min_scale&quot;:&quot;0.5&quot;,&quot;initial_rotate&quot;:&quot;0&quot;,&quot;end_rotate&quot;:&quot;30&quot;,&quot;initial_blur&quot;:&quot;0&quot;,&quot;end_blur&quot;:&quot;3&quot;,&quot;start_element&quot;:&quot;top&quot;,&quot;start_viewport&quot;:&quot;bottom&quot;,&quot;end_element&quot;:&quot;bottom&quot;,&quot;end_viewport&quot;:&quot;top&quot;,&quot;mouse_effect&quot;:&quot;track&quot;,&quot;mouse_effect_direction&quot;:&quot;opposite&quot;,&quot;mouse_effect_speed&quot;:&quot;2&quot;,&quot;infinite_animation&quot;:&quot;float&quot;,&quot;infinite_animation_speed&quot;:&quot;2&quot;}]\" data-scroll-devices=\"small-visibility,medium-visibility,large-visibility\"><div class=\"fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-text fusion-text-1\"><p><span class=\"TextRun SCXW64375791 BCX4\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW64375791 BCX4\">Many companies use long-term incentives (LTI) but treat them <\/span><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW64375791 BCX4\">like<\/span><span class=\"NormalTextRun SCXW64375791 BCX4\"> an extended bonus. This is understandable, but often a strategic mistake.<\/span> <span class=\"NormalTextRun SCXW64375791 BCX4\">Because although LTI and bonuses may seem similar at first glance, they pursue fundamentally different goals. <\/span><\/span><\/p>\n<p><span class=\"TextRun SCXW64375791 BCX4\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW64375791 BCX4\">Let&#8217;s<\/span><span class=\"NormalTextRun SCXW64375791 BCX4\"> take a closer look at their similarities and differences.<\/span><\/span><span class=\"EOP Selected SCXW64375791 BCX4\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/p>\n<h4><strong><span class=\"TextRun SCXW22349985 BCX4\" lang=\"DE-CH\" xml:lang=\"DE-CH\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW22349985 BCX4\"><span class=\"TextRun SCXW212037158 BCX4\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW212037158 BCX4\">Similarities: More Connection Than You Think<\/span><\/span><span class=\"EOP SCXW212037158 BCX4\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/span><\/span><\/strong><\/h4>\n<p><span class=\"TextRun SCXW159679313 BCX4\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW159679313 BCX4\">At first glance, LTI and bonuses do indeed come from the same &#8220;compensation family.&#8221;<\/span><\/span><span class=\"EOP Selected SCXW159679313 BCX4\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/p>\n<p><span class=\"TextRun SCXW217282036 BCX4\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW217282036 BCX4\">Both LTI and bonuses:<\/span><\/span><span class=\"EOP Selected SCXW217282036 BCX4\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"auto\"> are variable compensation components<\/span><\/li>\n<li><span data-contrast=\"auto\"> can be part of a comprehensive compensation strategy<\/span><\/li>\n<li><span data-contrast=\"auto\"> their amount depends on defined target criteria<\/span><\/li>\n<li><span data-contrast=\"auto\"> generally require an ongoing employment relationship<\/span><\/li>\n<li><span data-contrast=\"auto\"> are (at least to some extent) considered employment income for tax purposes<\/span><\/li>\n<li><span data-contrast=\"auto\"> are often legally structured as a salary component or bonus<\/span><\/li>\n<\/ul>\n<p><span class=\"TextRun SCXW203679835 BCX4\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW203679835 BCX4\">This sounds <\/span><span class=\"NormalTextRun SCXW203679835 BCX4\">very similar<\/span><span class=\"NormalTextRun SCXW203679835 BCX4\"> at first.<\/span><\/span><span class=\"EOP Selected SCXW203679835 BCX4\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/p>\n<h4><strong><span class=\"TextRun SCXW87550766 BCX4\" lang=\"DE-CH\" xml:lang=\"DE-CH\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW87550766 BCX4\"><span class=\"TextRun SCXW118201191 BCX4\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW118201191 BCX4\">The crucial differences<\/span><\/span><span class=\"EOP Selected SCXW118201191 BCX4\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/span><\/span><\/strong><\/h4>\n<p><span class=\"TextRun SCXW165100879 BCX4\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW165100879 BCX4\">Precisely because the similarities are so obvious, a closer look at the differences is worthwhile. They are strategically crucial.<\/span><\/span><span class=\"EOP Selected SCXW165100879 BCX4\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/p>\n<p><strong><span class=\"TextRun SCXW166383977 BCX4\" lang=\"DE-CH\" xml:lang=\"DE-CH\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW166383977 BCX4\">1. Past vs. Future<\/span><\/span><\/strong><span class=\"EOP Selected SCXW166383977 BCX4\" data-ccp-props=\"{\"><br \/>\n<\/span><\/p>\n<p><span class=\"TextRun SCXW54346250 BCX4\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW54346250 BCX4\">Traditional bonus models <\/span><span class=\"NormalTextRun SCXW54346250 BCX4\">generally reward<\/span><span class=\"NormalTextRun SCXW54346250 BCX4\"> past performance, typically after the end of a fiscal year.<\/span> <span class=\"NormalTextRun SCXW54346250 BCX4\">An LTI, on the other hand, looks ahead: It creates a tool to <\/span><span class=\"NormalTextRun SCXW54346250 BCX4\">monitor<\/span><span class=\"NormalTextRun SCXW54346250 BCX4\"> and reward future developments. The focus is clearly on future performance.<\/span><\/span><span class=\"EOP Selected SCXW54346250 BCX4\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/p>\n<p><strong><span class=\"TextRun SCXW225338067 BCX4\" lang=\"DE-CH\" xml:lang=\"DE-CH\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW225338067 BCX4\">2. <span class=\"TextRun SCXW205343252 BCX4\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW205343252 BCX4\">Short-term vs. Long-term<\/span><\/span><span class=\"EOP SCXW205343252 BCX4\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/span><\/span><\/strong><\/p>\n<p><span class=\"TextRun SCXW75551827 BCX4\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW75551827 BCX4\">Bonus models usually follow annual target-setting, evaluation, and payout cycles.<\/span> <span class=\"NormalTextRun SCXW75551827 BCX4\">Long-term incentives (LTIs), on the other hand, <\/span><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW75551827 BCX4\">are<\/span><span class=\"NormalTextRun SCXW75551827 BCX4\"> designed to run for several years. Often three years, sometimes four or five. In practice, these cycles often overlap, so that each year a new cycle begins while an existing one ends.<\/span> <span class=\"NormalTextRun SCXW75551827 BCX4\">This creates a significantly more sustainable perspective. Short-term fluctuations or planning uncertainties have a less pronounced impact.<\/span><\/span><span class=\"EOP Selected SCXW75551827 BCX4\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/p>\n<p><strong><span class=\"TextRun SCXW199227366 BCX4\" lang=\"DE-CH\" xml:lang=\"DE-CH\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW199227366 BCX4\">3. Individual vs. Company<\/span><\/span><span class=\"EOP Selected SCXW199227366 BCX4\" data-ccp-props=\"{\">\u00a0<\/span><\/strong><\/p>\n<p><span class=\"TextRun SCXW6618158 BCX4\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW6618158 BCX4\">Traditional bonus models often focus on individual performance, sometimes supplemented by team or company goals.<\/span> <span class=\"NormalTextRun SCXW6618158 BCX4\">An LTI follows a different fundamental principle: &#8220;We&#8217;re all in this together.&#8221;<\/span> <span class=\"NormalTextRun SCXW6618158 BCX4\">The focus is not on individual contributions, but on the development of the entire company. Typically, <\/span><span class=\"NormalTextRun SCXW6618158 BCX4\">strategic<\/span><span class=\"NormalTextRun SCXW6618158 BCX4\"> or financial goals at the company level are evaluated\u2014or directly, the development of the company&#8217;s value.<\/span><\/span><span class=\"EOP Selected SCXW6618158 BCX4\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/p>\n<\/div><div class=\"fusion-image-element \" style=\"--awb-aspect-ratio:2 \/ 1;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);\"><span class=\" fusion-imageframe imageframe-none imageframe-1 hover-type-none has-aspect-ratio\"><img decoding=\"async\" width=\"300\" height=\"98\" title=\"services_mehrwert\" src=\"https:\/\/dialog-unlocked.ch\/wp-content\/uploads\/\/services_mehrwert-300x98.jpg\" class=\"img-responsive wp-image-765 img-with-aspect-ratio\" alt srcset=\"https:\/\/dialog-unlocked.ch\/wp-content\/uploads\/services_mehrwert-200x65.jpg 200w, https:\/\/dialog-unlocked.ch\/wp-content\/uploads\/services_mehrwert-400x130.jpg 400w, https:\/\/dialog-unlocked.ch\/wp-content\/uploads\/services_mehrwert-600x195.jpg 600w, https:\/\/dialog-unlocked.ch\/wp-content\/uploads\/services_mehrwert-800x260.jpg 800w, https:\/\/dialog-unlocked.ch\/wp-content\/uploads\/services_mehrwert-1200x390.jpg 1200w, https:\/\/dialog-unlocked.ch\/wp-content\/uploads\/services_mehrwert.jpg 2000w\" sizes=\"(max-width: 640px) 100vw, 1200px\" \/><\/span><\/div><div class=\"fusion-text fusion-text-2\"><h4><strong><span class=\"TextRun SCXW3839661 BCX4\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW3839661 BCX4\">What does this mean for companies?<\/span><\/span><span class=\"EOP Selected SCXW3839661 BCX4\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/strong><\/h4>\n<p><span class=\"TextRun SCXW151666591 BCX4\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW151666591 BCX4\">In summary, a long-term incentive (LTI) is, compared to traditional bonus models:<\/span><\/span><span class=\"EOP Selected SCXW151666591 BCX4\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"auto\"> more forward-looking<\/span><\/li>\n<li><span data-contrast=\"auto\"> more long-term oriented<\/span><\/li>\n<li><span data-contrast=\"auto\"> more sustainable in its impact<\/span><\/li>\n<\/ul>\n<p><span class=\"TextRun SCXW39383118 BCX4\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW39383118 BCX4\">It can help to:<\/span><\/span><span class=\"EOP Selected SCXW39383118 BCX4\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"auto\"> retain key personnel over several years<\/span><\/li>\n<li><span data-contrast=\"auto\"> promote entrepreneurial thinking and action<\/span><\/li>\n<li><span data-contrast=\"auto\"> better align the interests of employees and owners<\/span><\/li>\n<\/ul>\n<h4><span class=\"TextRun SCXW261713406 BCX4\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW261713406 BCX4\">Additional<\/span><span class=\"NormalTextRun SCXW261713406 BCX4\"> effects of LTI models<\/span><\/span><span class=\"EOP Selected SCXW261713406 BCX4\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/h4>\n<p><span class=\"TextRun SCXW114520550 BCX4\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW114520550 BCX4\">Depending on its design, an LTI can also achieve effects that traditional bonus models cannot offer.<\/span> <span class=\"NormalTextRun SCXW114520550 BCX4\">These include, for example:<\/span><\/span><span class=\"EOP Selected SCXW114520550 BCX4\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"auto\"> relief for the company&#8217;s short-term liquidity<\/span><\/li>\n<li><span data-contrast=\"auto\"> potential tax advantages for employees<\/span><\/li>\n<\/ul>\n<p><span class=\"TextRun SCXW75117925 BCX4\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW75117925 BCX4\">However, these aspects deserve a more in-depth look (more on this another time).<\/span><\/span><span class=\"EOP Selected SCXW75117925 BCX4\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/p>\n<h4><span class=\"TextRun SCXW190094474 BCX4\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW190094474 BCX4\">Conclusion<\/span><\/span><span class=\"EOP Selected SCXW190094474 BCX4\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/h4>\n<p><span data-contrast=\"auto\">While LTIs and bonuses come from the same family, they are very different siblings.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">It is worthwhile for companies to consciously understand these differences and use them strategically. Because when used correctly, long-term incentives are far more than just a &#8220;bonus with a longer duration.&#8221; <\/span><span data-contrast=\"auto\">They are a strategic instrument forsustainable corporate development.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:288}\">\u00a0<\/span><\/p>\n<p>If you have any questions or require further assistance, please feel free to <a href=\"mailto:info@dialog-unlocked.ch\">contact <\/a>us at any time.<\/p>\n<\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[23],"tags":[],"class_list":["post-1197","post","type-post","status-publish","format-standard","hentry","category-unkategorisiert-2"],"_links":{"self":[{"href":"https:\/\/dialog-unlocked.ch\/en\/wp-json\/wp\/v2\/posts\/1197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dialog-unlocked.ch\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dialog-unlocked.ch\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dialog-unlocked.ch\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/dialog-unlocked.ch\/en\/wp-json\/wp\/v2\/comments?post=1197"}],"version-history":[{"count":6,"href":"https:\/\/dialog-unlocked.ch\/en\/wp-json\/wp\/v2\/posts\/1197\/revisions"}],"predecessor-version":[{"id":1224,"href":"https:\/\/dialog-unlocked.ch\/en\/wp-json\/wp\/v2\/posts\/1197\/revisions\/1224"}],"wp:attachment":[{"href":"https:\/\/dialog-unlocked.ch\/en\/wp-json\/wp\/v2\/media?parent=1197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dialog-unlocked.ch\/en\/wp-json\/wp\/v2\/categories?post=1197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dialog-unlocked.ch\/en\/wp-json\/wp\/v2\/tags?post=1197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}