Nadia Haddad· Director of Rewards, MEA, Qasr Holdings
Asked in Executive Compensation ·
I am the first reward hire at a private equity backed software business headquartered in the UK with about 1,100 people. A listing is planned within 18 to 24 months. The top 35 managers hold sweet equity that pays out on an exit under a ratchet, and another 200 people have options that vest on exit.
The sponsor will sell down in stages, so there may be no single exit event. I have been asked to propose how the existing arrangements convert and what the listed company plans look like.
For those who have been through a listing: what converted, what was locked up, and what did you wish you had settled earlier?
0 reactions · 3 replies · 4 views
Priya RaghunathanGRS, CSI
Head of People Analytics, Calibre Software
The ratchet crystallised at the offer price and management's equity became ordinary shares. Executive directors were locked up for 12 months on everything, then could sell a third a year. The next level down was locked for six months. Settle the definition of exit now. Ours said a sale of more than 50%, the sponsor floated 35%, and we spent a painful summer renegotiating.
Dana WhitfieldCRP, GRS
Director, Global Compensation, Meridian Health Systems
What I wish we had done earlier is the first listed long-term grant. Everyone was so focused on conversion that nobody noticed the top team would have nothing unvested from month 13. We granted at listing, three-year performance vesting, and still lost two people in year two when their lock-ups expired.
Dana WhitfieldCRP, GRS
Director, Global Compensation, Meridian Health Systems
For the 200 option holders, check what vesting on exit does to your share count and to tax withholding on the day. We had to fund several million in employer social charges at admission and sell shares on behalf of employees to cover their tax, all inside the first week. Model it with payroll now.
