How to Prepare Your Executive Compensation Plans for Going Public

As companies prepare to go public, they must redesign their executive compensation structures to adhere to all manner of rules and regulations. Go-Public compensation strategies should be evidence-based, so the first step is to define a market reference. 

In this brief video, Jim Kzirian, Partner at Meridian Compensation Partners, explains why companies should select a peer group of public companies as a reference point. These companies could have any number of things in common: industry vertical, revenue, market capitalization, etc.

Peer groups are rich sources of information for pay benchmarking, annual and long-term incentive program design features, the magnitude of equity grants, and more. They can help companies establish a compensation program that reinforces talent attraction, retention, and motivation.