In some long-term incentive plans, shares are awarded without cost to the executive, but with certain restrictions imposed by the employer.These plans are called

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Restricted share unit plans award shares without cost to the executive, but with certain restrictions imposed by the employer, such as a vesting period or performance conditions that must be met before the shares can be fully owned by the executive. Stock appreciation rights plans involve the executive receiving the difference between the stock's market price at the time the right is exercised and the grant price. Book value plans do not typically involve share awards. Stock options allow the executive to purchase shares at a certain price, but do not involve actual share awards. Phantom stock plans involve the executive receiving cash payments based on the performance of the company's stock without actually owning any shares.

In Some Long-Term Incentive Plans, Shares Are Awarded Without Cost