"Managing Exec Comp in Emerging Growth Companies" from Semler Brossy provides thoughtful context around how newly public Emerging Growth Companies can most effectively manage executive compensation processes and disclosure with a view toward ultimately successfully and smoothly transitioning out of EGC status as a more mature public company.While the article conveniently outlines the executive compensation scaled disclosure requirements for EGCs, it also makes a good case for thinking outside the box (or the SEC rulebook, as the case may be) as respects thoughtful compensation program design and disclosure to optimally position EGCs vis-a-vis investors and public perception upon losing their EGC status.
Executive compensation-related considerations are prioritized in the context of the EGC lifecycle with a view toward benefiting from the scaled disclosure requirements and other flexibility common to newly public companies while remaining cognizant of other relevant and potentially impactful considerations (e.g., proxy advisors, institutional investors), as depicted here:
Access additional information & resources on our Emerging Growth Companies page. This post first appeared in the weekly Society Alert!