In today’s competitive environment, integrated communications and digital firms are on the lookout for effective ways to attract, retain and incentivize their key employees. An increasingly important component of the overall compensation package is long–term incentive arrangements. Implemented properly, long-term incentive arrangements can enhance individual performance, improve firm revenue growth and profitability, and aid in the retention of key employees. There are many different long–term incentive vehicles that a company can choose from; contract equity and long-term incentive plans (LTIPs) are the two most important.