What is the vesting period for the C12 Group's Long-Term Incentive Plan (LTIP)?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
In 2024, the Company established a Long-Term Incentive Plan (LTIP) for the executive leadership team. Under the LTIP, eligible executives are entitled to receive an incentive equivalent to 16% of the annual appreciation of the Company, as determined yearly by a third-party. This incentive is distributed amongst the executives at the discretion of the board of directors. The LTIP has a 5-year cliff vesting period. Should an executive exit the Company before the completion of the vesting period, any accrued incentive is forfeited.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the company established a Long-Term Incentive Plan (LTIP) in 2024 for its executive leadership team. Under this plan, eligible executives may receive an incentive equivalent to 16% of the company's annual appreciation, as determined yearly by a third-party. The distribution of this incentive among the executives is at the discretion of the board of directors.
The LTIP has a 5-year cliff vesting period. This means that the executives must remain with the company for five years to be fully entitled to the incentive.
If an executive leaves C12 Group before completing the 5-year vesting period, they will forfeit any accrued incentive. This condition encourages long-term commitment from the executive leadership team.