May 25, 2021
Roadmap for Communicating IPO Equity Compensation
– Lynn Jokela
Liz blogged not too long ago about market practice for stock incentive plans and employee stock purchase plans for companies going public. A recent blog from Sharon Podstupka of Pearl Meyer provides a reminder that when going public, communication planning about equity compensation is one aspect of the transaction that shouldn’t be overlooked. The last thing companies want on the day of the IPO is fallout from employees upset or concerned about how they’re being compensated and whether it’s impacted by the IPO.
The blog includes a sample roadmap for compensation communication planning, here’s an excerpt but see the blog for a handy chart:
Post S-1, Pre-IPO: Meet with leaders and manager to explain what they’ll receive, when and how they’ll receive it and what their teams and direct reports will receive and their role in communication
IPO Day: Key messages from CEO via email or other media covering the significance of the day and how equity will factor into rewarding for success
Post-IPO: Communication from leaders and managers to direct reports with information about equity awards, how the award works, award agreement and personalized worksheet with award details
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