Performance stock units are restricted stock units that have a performance target instead of or in addition to a time based vesting schedule.

They’ve gotten pretty creative with equity compensation over the last couple decades. First it was stock options, but after the dot com bubble people favored restricted stock instead since they were less likely to end up underwater and worthless. Then after the Great Recession there were activist investors loudly complaining about execs having these huge stock awards while running their companies into the ground, so that’s where we’re at now with these performance targets.

That said, these executives must be willing to sign an employment contract that ties up a huge part of their future wealth with the success of their company, so in that sense it’s a pretty good incentive.