System and method for a performance incentive plan

A computer-based system for providing an employee incentive and compensation plan, comprising:

• a computer processor for deferring a portion of an employee's compensation over a first period of time;
• a data structure comprising one or more data elements which are configured to operate with a computer program for selecting a performance metric representative of a financial performance of said employee's company of employment;
• a software arrangement which is operable on said processor for converting said employee's deferred compensation into an initial number of units by dividing said total deferred compensation by a stock share price averaged over a second period of time;
• a software arrangement which is operable on said processor for converting said employee's initial number of units into a final number of units wherein said final number of units depends on said financial performance metric averaged over said first period of time;
• a software arrangement which is operable on said processor for converting said final number of units into a number of shares of stock wherein said number of shares of stock depends on a stock share price averaged over a third period of time;
• and
• a software arrangement which is operable on said processor for a total compensation to said employee after said first period of time wherein said total compensation is said number of shares of stock.