Pre-IPO and Post-IPO Compensation Strategy
Overview
There are significant differences in executive compensation structures before and after an Initial Public Offering (IPO). These differences are often more pronounced when an organisation is backed by venture capital or private equity before going public. One key aspect that IPO investors examine is the structure of executive compensation plans, which helps them assess the continuity of the leadership team, appropriate linkages to short- and long-term performance, potential share usage, and more. At Exec-Rem, we assist our clients with various aspects of executive compensation planning, both pre- and post-IPO.
Pre-IPO Interventions
- Analysis of executive compensation structures pre-IPO to address any gaps
- Modifications in executive compensation quantum and structure pre-IPO
- Assessment of retention strategies
- Assessment of pre-IPO equity compensation schemes to address any gaps
- Recommendations on pre-IPO equity compensation schemes from the perspective of post-IPO proxy advisors and shareholder ratification
- Design and grants of pre-IPO equity plan
Post-IPO Interventions
- Executive compensation philosophy post-IPO based on competitiveness, performance orientation, risk mitigation, and governance
- Design of post-IPO short-term and long-term incentive plans
- Assessing the need for new schemes
- Assessment of equity usage post IPO
- Non-Executive Director (NED) compensation
