Executive Compensation Solutions
Typical Client Challenges for Private and Pre-IPO Companies
- Balancing cash constraints with meaningful equity while managing dilution and cap table complexity.
- Preparing leadership pay programs, equity structures, and governance for a future IPO, sale, or majority investment.
Signature Solutions
- Executive Pay Philosophy for Investors and Founders: Clarifying how management is rewarded for growth, value creation, and exit events, aligned with board and sponsor expectations.
- Market Benchmarking to the ‘Right’ Comparators: Blending public, private, and PE backed data to reflect size, growth, funding stage, and sector.
- Equity and Value Sharing Design: Option, RSU, and profits interest plans; vesting design; performance and time based mix; refresh and top up strategies; exit/IPO treatment.
- Pre-IPO Readiness: Transitioning from informal or founder centric pay to a scalable executive and board compensation framework suitable for public company life.
- Management incentive Plans in PE Backed Settings: Deal aligned management incentive plans (MIPs), waterfall structures, and alignment between sponsors and management.
- Employment, Severance, and Change In Control: Competitive and investor acceptable terms around protection, restrictive covenants, and transaction related incentives.
Deliverables (Examples)
- “Pre IPO Compensation Blueprint” summarizing go forward salary ranges, bonus plans, equity strategy, and governance upgrades needed before filing.
- MIP term sheet and cap table impact modeling to support board/sponsor decisions and management communication.