In the lumi reward benchmark, 36.9% of UK organisations operate a long-term incentive or equity plan for any level of staff, and 63.1% operate none (n = 268, 2026 H1).
Key findings
- 36.9% of organisations operate a long-term incentive or equity plan for any level of staff (n = 268). "No" is the common answer, at 63.1%.
- Performance shares are the common main plan type, named by 42.4% of organisations that named a main plan (n = 99). Cash LTIP is the alternative, at 29.3%.
- The main plan is share-based for 66.7% of those organisations: performance shares, share options or RSUs (42.4% + 19.2% + 5.1%; n = 99).
- 83.8% operate neither SAYE nor SIP (n = 185). 16.3% operate at least one all-employee share plan (11.4% SAYE + 3.8% SIP + 1.1% both).
- 78.9% operate neither EMI nor CSOP (n = 185). CSOP is reported by 18.4% and EMI by 2.7%. No organisation reports both (0.0%).
- 94.7% have no employee-ownership structure in place or under consideration (n = 266). 1.5% are EOT-owned and 3.8% have one under consideration.
About the data
This paper reports how UK employers answered lumi's questions on long-term incentives and share plans. The lumi reward benchmark covers 269 UK organisations across 14 sectors and five size bands. Data was collected in the 2026 H1 collection window. Each figure gives its base (n): the number of organisations that answered that question. Percentages are rounded to one decimal place, so a distribution can add up to 100.1%. Figures here are national. Sector and size comparisons are available to lumi members. See how lumi works for the method.
The legal context
The practice is not set by statute: no UK law requires an employer to offer a long-term incentive, an employee share plan or an employee-ownership structure.
How many UK employers operate a long-term incentive plan?
The benchmark first asked: Does your organisation operate any long-term incentive or equity plans for any levels? (n = 268)
"No" is the common answer, given by 63.1% of organisations (169). "Yes" is the alternative, given by 36.9% (99).
The question is broad by design. It covers any long-term incentive and any equity plan, at any level of the organisation. A "Yes" can mean a plan for a handful of directors, a plan open to a wide population of staff, or several plans at once. The benchmark records whether a plan exists. It does not record who is eligible, how much is awarded or how often awards are made.
A "No" is narrower than it may look. It does not mean that nothing in the package looks beyond the current year. Pension contributions, deferred bonus and pay progression all work over a long horizon. It means the organisation does not run a plan that it counts as a long-term incentive or equity plan.
Neither answer carries a judgement. Which position fits depends on ownership, on the roles the organisation needs to hold, and on what it wants reward to do over time.
The question joins two ideas: long-term incentives, which can be paid in cash, and equity plans, which give a stake in the business. The next question separates them.
Which type of long-term incentive plan is most common?
The benchmark then asked: Which type of long-term incentive plan is the main one offered? (n = 99)
The 169 organisations that answered "Not applicable" are excluded from the base. These figures therefore describe only the 99 organisations that named a main plan.
| Main plan type | % of base (n = 99) | Organisations | Prevalence |
|---|---|---|---|
| Performance shares | 42.4% | 42 | common |
| Cash LTIP | 29.3% | 29 | alternative |
| Share options | 19.2% | 19 | rare |
| RSUs | 5.1% | 5 | rare |
| Other | 4.0% | 4 | rare |
Performance shares are the common main plan, at 42.4%. Cash LTIP is the alternative, at 29.3%. Share options (19.2%), RSUs (5.1%) and other types (4.0%) are rare. Taken together, the main plan is one of the three share-based types for 66.7% of these organisations (42.4% + 19.2% + 5.1%).
Each vehicle makes a different promise to the person who receives it:
- Performance shares vest only if set performance conditions are met over a defined period. Their value depends on both the conditions and the share price.
- A cash LTIP pays cash against long-term targets. It needs no shares, so an organisation without equity to offer can run one. It does not dilute existing owners, but the organisation has to fund the payout in cash.
- Share options give the right to buy shares at a fixed price. They have value only if the share price rises above that price.
- RSUs (restricted stock units) turn into shares after a period, often on continued service alone. They keep some value even when the share price falls.
These types differ on two axes: how the award is paid (shares or cash) and what it depends on (performance measures, share-price growth or service). The common answer, performance shares, pairs equity with performance conditions. The alternative, a cash LTIP, keeps long-term targets but removes equity.
Two limits apply. The question asks for the main plan only. An organisation can run more than one plan, and the benchmark does not record the others. The base is also small: RSUs rest on 5 organisations and "Other" on 4, so those shares describe very few organisations.
How many UK organisations are employee-owned?
Is any employee-ownership structure in place or under consideration (e.g. EOT)? (n = 266)
"No" is the common answer, given by 94.7% of organisations (252). "Under consideration" is rare, at 3.8% (10). "EOT-owned" is rare, at 1.5% (4). Together, 5.3% are EOT-owned or have employee ownership under consideration (1.5% + 3.8%).
Employee ownership works at a different level from the plans above. A share plan gives individuals a stake. An employee ownership trust (EOT) holds shares for employees as a group. It is an ownership decision taken by a company's owners, not a plan designed by the reward function. Reward then works inside that structure: how value is shared, and with whom, follows from the ownership model.
The counts are small, so the figures support little analysis beyond showing that employee ownership is rare among these organisations.
What the data means for reward decisions
Several trade-offs sit behind these figures.
Whether to run a long-term plan at all. Running no plan is the common answer (63.1%, n = 268). A long-term plan links reward to results over several years and gives participants a reason to stay through a vesting period. It also adds cost, administration and governance. Its value to the participant is uncertain and distant, which can weaken its pull. Questions a reward team might ask: what outcome, over what period, is the plan meant to reward? Whose decisions most affect that outcome? Could a deferred element in the annual bonus do the same job with less complexity?
Shares or cash. Among organisations that named a main plan, 66.7% use a share-based type (42.4% + 19.2% + 5.1%) and 29.3% use a cash LTIP (n = 99). Shares tie participants' outcomes to owners' outcomes, but they dilute existing holdings and need equity to offer. Cash avoids dilution and works where there are no shares to give, but the organisation has to fund the payout when it falls due. Questions to ask: does the organisation have equity it can use? How do its owners view dilution? How would a cash payout be funded in a weak year?
What the award depends on. Performance shares are the common main plan (42.4%). Share options (19.2%) and RSUs (5.1%) are rare. Performance conditions give a line of sight to targets, but they add measurement risk and can pay nothing. Service-based awards such as RSUs pay out more predictably but link less closely to results. Options pay only if the share price grows. Questions to ask: how much certainty does a participant need before an award changes behaviour? Which measures can be set years ahead with confidence?
Selective or all-employee. At least one discretionary EMI or CSOP plan is reported by 21.1% (18.4% + 2.7% + 0.0%). At least one all-employee plan is reported by 16.3% (11.4% + 3.8% + 1.1%). Both figures are on a base of 185. Discretionary plans concentrate value on people the employer selects. All-employee plans spread ownership across the workforce, but their reach depends on employees choosing to take part. Questions to ask: is the aim to reward specific individuals or to build a broad stake in the business? Can the organisation support the communication an all-employee plan needs?
Ownership structure. 1.5% are EOT-owned and 3.8% have employee ownership under consideration (n = 266). A change of ownership raises questions for any existing plan. How would current awards be treated? What role would individual incentives play once employees share ownership as a group?
Rare does not mean wrong. An all-employee plan, a CSOP and an EOT are each rare among these organisations. For an organisation whose aims and ownership fit, a rare choice may be the natural one. The benchmark shows how often each answer was given, not which answer suits.
Frequently asked questions
What percentage of UK employers operate a long-term incentive plan?
In the lumi reward benchmark, 36.9% of UK organisations operate a long-term incentive or equity plan for any level of staff (n = 268). The other 63.1% operate none. The question covers any plan at any level of the organisation.
What is the most common type of long-term incentive plan in the UK?
Performance shares are the most common main plan in the lumi reward benchmark, named by 42.4% of the organisations that named one (n = 99). A cash LTIP is the alternative, at 29.3%, followed by share options (19.2%), RSUs (5.1%) and other types (4.0%). The 169 organisations answering "Not applicable" are excluded from this base.
Are long-term incentives paid in shares or in cash?
In the lumi reward benchmark, the main plan is share-based for 66.7% of organisations that named one — performance shares, share options or RSUs (42.4% + 19.2% + 5.1%; n = 99). A cash LTIP is the main plan for 29.3%. Cash avoids dilution and works without shares to offer.
What percentage of UK employers offer an all-employee share plan such as SAYE or SIP?
In the lumi reward benchmark, 16.3% of organisations operate at least one all-employee share plan (11.4% SAYE + 3.8% SIP + 1.1% both; n = 185), and 83.8% operate neither. SAYE, alone or with SIP, is the more frequently reported form, at 12.5% (11.4% + 1.1%). The figures do not show how many employees take part.
Do UK employers use EMI or CSOP share option plans?
In the lumi reward benchmark, 21.1% of organisations operate at least one discretionary tax-advantaged option plan (18.4% CSOP + 2.7% EMI + 0.0% both; n = 185), and 78.9% operate neither. CSOP is the more frequently reported of the two. No organisation in the benchmark reports both plans.
How many UK organisations are employee-owned or considering an EOT?
In the lumi reward benchmark, 1.5% of organisations are EOT-owned and 3.8% have an employee-ownership structure under consideration, a combined 5.3% (n = 266). The remaining 94.7% have no such structure in place or under consideration. The counts behind these shares are small.
Notes
- Base, "Not applicable" handling and rounding are as described in "About the data".
- The question on which type of long-term incentive plan is the main one offered excludes "Not applicable" from the base. 169 organisations answered "Not applicable". The base of 99 is the organisations that named a main plan.
- For the other four questions, any "Not applicable" answers sit inside the base.
- Bases differ between questions (268, 99, 185, 185 and 266) because each counts the organisations that answered that question. Figures from different questions describe different groups and are not combined in this paper.
- Combined figures add the listed percentages of answers within a single question. The parts are shown each time.
- Several answers rest on small counts: SIP (7 organisations), both SAYE and SIP (2), EMI (5), RSUs (5), "Other" main plan (4) and EOT-owned (4).
Data appendix
Every question on this page, with its base and full distribution, as a spreadsheet: download the CSV.
All national figures used in this paper, as recorded in the lumi reward benchmark (collection window 2026 H1).
Does your organisation operate any long-term incentive or equity plans for any levels?
Base: 268 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| No | 63.1% | 169 | common |
| Yes | 36.9% | 99 | alternative |
Which type of long-term incentive plan is the main one offered?
Base: 99 organisations · "Not applicable" excluded from base
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| Performance shares | 42.4% | 42 | common |
| Cash LTIP | 29.3% | 29 | alternative |
| Share options | 19.2% | 19 | rare |
| RSUs | 5.1% | 5 | rare |
| Other | 4.0% | 4 | rare |
Do you operate an all-employee share plan (SAYE/Sharesave or SIP)?
Base: 185 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| Neither | 83.8% | 155 | common |
| SAYE | 11.4% | 21 | rare |
| SIP | 3.8% | 7 | rare |
| Both | 1.1% | 2 | rare |
Do you operate discretionary tax-advantaged option plans (EMI or CSOP)?
Base: 185 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| Neither | 78.9% | 146 | common |
| CSOP | 18.4% | 34 | rare |
| EMI | 2.7% | 5 | rare |
| Both | 0.0% | 0 | rare |
Is any employee-ownership structure in place or under consideration (e.g. EOT)?
Base: 266 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| No | 94.7% | 252 | common |
| Under consideration | 3.8% | 10 | rare |
| EOT-owned | 1.5% | 4 | rare |
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David Whitfield, Long-term incentives and share plans: UK benchmark 2026. lumi, collection window 2026 H1. https://lumihr.co.uk/research/ltip-share-plans-2026Last reviewed 20 September 2026 · Figures describe organisations in the lumi reward benchmark, not a random sample of UK employers. Every figure on this page states the question asked and the number of organisations that answered it.