Even if the positive mood on the capital markets is currently weakening, numerous companies are still considering to go public.

The process of transitioning from a private to a public company takes significant effort across essentially all of a company’s core functional areas over an extended period — often at least 6 months and, in many cases, closer to a year or longer. From a talent and compensation program perspective, the core tenet of rewarding executives and employees for driving business results (i.e., paying for performance) will remain; however, there are several key compensation program features and governance-related practices to consider when making the transition.

The most important tasks for top management and management

In a new ViewPoint, Brian Lane, Joe Mallin and Tara Tays, experts with Pay Governance, the strategic hkp/// group Alliance Partner North America and Asia, shed light on critical elements to be reviewed and established prior to an IPO including: 

  1. Establishing/Updating a Compensation Philosophy
  2. Reviewing/Aligning Executive Pay Levels to Business Objectives and Competitive Practice
  3. Developing a Long-term Incentive (LTI) / Equity Program Strategy
  4. Reviewing/Establishing Severance and Change in Control Policies

The Pay Governance Viewpoint completes insights by hkp/// group experts Petra Knab-Hägele and Dr. Jan Dörrwächter in their interview on hkp.com (Jan 2021) and an article in DER AUFSICHTSRAT (Jan 2022).

To the article

Author Dr. Pia Lünstroth

You would like to know more about this topic?

Arrange a (telephone) appointment with Dr. Pia Lünstroth