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descriptionIssue Brief
Posted on: 9/08/2025
Unpacking the Outperformance Stock Unit
Long-term incentive (LTI) designs are much too homogenous. This has led to a growing concern that LTI programs aren’t working as well as they could or should be.
The OPSU, or outperformance stock unit, offers a way forward. First introduced in the October 2024 issue of Workspan magazine, an OPSU introduces extraordinary upside into the LTI stack, with minimal disclosed value and minimal expense until the upside materializes.
In this issue brief, we show how an OPSU drives exceptional cost-benefit efficiency and explore some of the many different ways to design this type of award.
