The Advisors' Blog

IPOs are (hopefully) becoming great again, and there are many compensation matters to sort through on the path to public. This checklist from Pay Governance breaks down the key topics for the compensation committee to consider – and why they matter. Among other topics, the checklist addresses:

– Compensation philosophy

– Peer group

– Executive pay levels

– Equity program strategy

– Initial equity reserve

– Director pay

– Severance arrangements

There’s no “one-size-fits-all” approach to compensation, so if your company or client is planning an IPO, make sure to consider what’s best for your particular circumstances and assess all the legal issues alongside internal and external communications, logistics, etc. For a great collection of perspectives, check out the transcript from our recent webcast for members on “Pre-IPO Through IPO: Compensation Strategies for a Smooth Transition.”

– Liz Dunshee