Greater sharing—even greater expectations: Private equity portfolio company management compensation survey

May 2016

Big picture: Equity compensation trends and practices

Sponsors have begun to increase the size of equity compensation pools to push equity deeper into the organization, while continuing to use return-based performance conditions.

#1—Diving in: Increase in Management equity poolManagement equity pool reserves have increased to 12% of fully diluted shares (up from 10% in earlier studies), at the median.

Read more >

Key takeaways:

 

#1—Diving in: Increase in Management equity pool

Management equity pool reserves have increased to 12% of fully diluted shares (up from 10% in earlier studies), at the median.

Read more >

 

#2—Driving performance: Award vehicles

Stock options remain the most prevalent form of equity compensation used by financial sponsors.

Read more >

 

#3—Award vesting and performance goals

Sponsors continue to tie award vesting to performance-based conditions.

Read more >

 

#4—Plan participation

Participation is generally limited to the two- to-three most layers of senior management.

Read more >

 

#5—Cash compensation levels

Cash compensation (salary plus annual bonus opportunity) for executives at sponsor-backed companies is generally aligned with market competitive pay levels for public company executives.

Read more >

 

Contact us

Scott Olsen
US People and Organization Co-leader
Tel: +1 (646) 471 0651
Email

Steve Rimmer
Principal
Tel: +1 (646) 471 8860
Email

Andrew Skor
Director
Tel: +1 (646) 471 2311
Email

Follow us