Foley Equipped
Insights

What executive compensation and employee benefits considerations are important in preparation for going public?

  • Consider hiring a compensation consultant who can help analyze benchmark comparable companies and anticipate potential responses from public investors and shareholder activists.
  • Start creating a compensation structure suited for a public company.
  • Consult with legal advisors about forward-looking public company equity plans.
  • Arrange for repayment of any loans to directors or officers prior to filing the Registration Statement.
  • Consider obtaining key-man insurance for key executives.
  • Prepare employment and/or change-of-control agreements, if needed.
  • Verify that existing employee benefit plans comply with ERISA and other legal requirements.
  • Revise existing employee benefit plans to comply with securities and tax law requirements.
  • Assess which RSUs or other equity awards will vest or settle during the common 180-day IPO lock-up period and determine whether the company will have sufficient funds available to cover the withholding taxes on those awards.
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