Executive Remuneration: Preparing for an IPO
There are many remuneration issues companies approaching an IPO need to consider, including:
- The appropriate level of salary for senior executives.
- The design of the annual bonus plan, including the level of potential bonuses and relevant performance metrics.
- Long-term incentive provision, taking account of the company's objectives, the vesting profile of pre-IPO incentives, market practice, investor views, share usage, accounting cost and tax implications.
- The optimum balance between fixed and variable pay and between short and long-term incentives.
- Service contract terms (in particular notice periods).
- Whether some form of specific "one-off" bonus or share award should be granted at IPO.
- The choice of all-employee share plan and how and when it should be operated.
- The level and structure of Non-Executive Directors' fees.
This free guide is intended to assist companies in addressing all these pay-related issues as they prepare for their IPO.