LONG-TERM INCENTIVE PLAN (LTIP) OVERVIEW The LTIP component, which is being phased out through 2023, is $2,688.1 (thousand) for the year ended December 31, 2021. This represents the deferred component of 2018 total compensation and the payout is based on the annualized net investment results in excess of the total fund performance benchmark for the most recent four years, 2018-2021. The LTIP results differ from the long-term component of the ICP results because the LTIP plan set a maximum performance level of 75 bps after costs versus a maximum of 84 bps after costs under the ICP. A summary table of the net value-added results used to determine the annualized LTIP result is as follows:
Year ended December 31, 2018
Net Value Added (bps)
Percentage of Target (%)
103.4
286.0
Year ended December 31, 2019
48.7
120.2
Year ended December 31, 2020
(16.8)
(40.0)
Year ended December 31, 2021
210.4
610.3
Annualized Long-Term
86.7
235.5
50 | VESTCOR ANNUAL REPORT 2021
