{"id":1234,"date":"2026-05-28T16:29:40","date_gmt":"2026-05-28T14:29:40","guid":{"rendered":"https:\/\/dialog-unlocked.ch\/ownership-vs-bonus-why-an-lti-makes-a-bigger-difference\/"},"modified":"2026-05-28T16:49:26","modified_gmt":"2026-05-28T14:49:26","slug":"ownership-vs-bonus-why-an-lti-makes-a-bigger-difference","status":"publish","type":"post","link":"https:\/\/dialog-unlocked.ch\/en\/ownership-vs-bonus-why-an-lti-makes-a-bigger-difference\/","title":{"rendered":"Ownership vs. bonus: Why an LTI makes a bigger difference"},"content":{"rendered":"

A bonus has no ownership spirit.<\/p>\n<\/p>\n

Of course, a well-balanced bonus model measures and rewards performance targets, which ideally also indirectly influence the company’s success. In some cases, pools are even created that are funded by company profits and distributed to employees (profit-sharing models).<\/p>\n<\/p>\n

But does this lead to employees feeling as if they own part of the company? Probably not.<\/p>\n

Bonus: Reward without ownership spirit<\/h4>\n<\/p>\n

Bonus schemes create a link between performance and compensation. In many cases, there is also an indirect link to the company’s success.<\/p>\n<\/p>\n

Nevertheless, this connection remains limited. While employees benefit from the company’s success, they do not become co-owners, neither legally nor in their self-perception.<\/p>\n<\/p>\n

A bonus thus remains primarily a tool for short-term performance-based compensation.<\/p>\n<\/p>\n

LTI: Remuneration with ownership <\/strong><\/p>\n<\/p>\n

This is where a long-term incentive (LTI) comes into play.<\/p>\n<\/p>\n

An LTI is often also referred to as employee share participation plan. And that’s precisely the difference. Employees become co-owners or at least have a financial stake in the company.<\/p>\n<\/p>\n

This fosters a genuine sense of ownership.
\nThis typically manifests itself in the following aspects:<\/p>\n