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Incentive Compensation Private Equity

Goodwin

Thinking Outside the Buyout: Four Factors Management Teams Need to Get Right

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Management teams of companies acquired by private equity (PE) firms often find themselves in a unique position. For a time, they are both selling owners and operators who will continue to run the business after the sale....more

DarrowEverett LLP

Private Equity Incentive Structures: What Management Needs to Know

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If a private equity buyer is exploring an acquisition of the company you manage, and you anticipate remaining involved in the business after the sale, there are a number of options that may be appealing to you. It is likely...more

Bradley Arant Boult Cummings LLP

Majority Owners Achieving Balance: Incentivizing Employees Without Giving Up the Keys to the Whole Kingdom

Success is not just an elusive goal – it can also be difficult to maintain once achieved. For majority owners in private companies, achieving success is just the first hurdle, because once they arrive at this pinnacle, they...more

DarrowEverett LLP

Post-Closing Incentive Structures for Key Management in Private Equity

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If you own or manage a company that a private equity firm is looking to acquire, and you plan to stay on after the closing, you’ll likely need to negotiate two key points: rolling over some or all of your equity and...more

Goodwin

Trends in Equity Repurchasing in PE: Rollover vs. Incentive Equity

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Private equity (PE) sponsors often provide incentives to founders, equity holders, employees, directors, and officers of portfolio companies in the form of rollover equity or incentive equity to align their interests with...more

Goodwin

Stretching and Flexing - Part Two: Keeping the Management Team Incentivised for the Longer Journey

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Parties facing these issues often propose a MIP reset to realign management’s interests with those of the original (and, if applicable, new) sponsor until the eventual full exit. MIP resets have long been used to rescue...more

Hogan Lovells

Private equity – Navigating manager exits and management incentives in challenging times

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This article discusses the key issues to be considered where a senior executive’s employment is to be terminated and the management incentive plan needs a reset, all in the context of operating in times of economic stress....more

Goodwin

Incentive Equity: Vesting Criteria for Management Teams of PE-Backed Portfolio Companies

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Vesting terms for incentive equity arrangements of private equity (PE) backed portfolio companies can come in many shapes and sizes. While many PE sponsors have their own preferred vesting terms, deal practitioners should...more

Latham & Watkins LLP

Worker Windfalls Bring Benefits for PE

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Sponsors are likely to explore share-based schemes and other plans to incentivise non-managerial staff. Incentivising management with sweet equity and co-investment opportunities is a tried and tested strategy for buyout...more

Dorsey & Whitney LLP

Equity Incentive Compensation in LLCs

Dorsey & Whitney LLP on

In a recent post, I recommended that the typical startup should start as an LLC (limited liability company) and remain an LLC as long as possible. One ever-present challenge with LLCs is that most entrepreneurs (present...more

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