In a role reversal of sorts, equity-based incentives have emerged as a key factor to attract and retain talent. According to ‘The 2012 Global Equity Incentives Survey’ conducted by PwC and National Association of Stock Plan Professionals, NASSP, Indian companies that participated in the 2012 Global Equity Incentives survey showed a 35 percent increase in equity grants in 2012 vis-à-vis 2011. According to Padmaja Alaganandan, Executive Director – People & Change Practice, PwC India, “Globally, the appeal of performance awards seem to be on a decline among plain vanilla ESOP plans, while there is an increase in time-based options and restricted stock awards. Interestingly, this situation is reversed in India where there is a perceived increase in performance linkage in equity plans.” As against 2011 when the global scenario saw an overall decrease in equity awards granted, with a rise in the use of performance awards 2012 seems to be the year of cautiousness, with companies getting back to the basics. The survey points out that companies have generally restored grant levels to 2009 levels, and seem to be coming out of the recession with a newfound comfort in making business decisions on where to allocate internal resources relating to employee equity plans and determining what types of plans work for them. In fact, for 2012, the key drivers for offering employee equity programs are in tune with aligning compensation with business strategy and keeping pace with market trends.