The IPO Game – When to Play Offense or Defense in Executive Compensation DesignDownload PDF
Organizations need to deliberately plan and communicate executive compensation objectives and structure in an initial public offering (IPO). In this Workspan article, we will discuss the choices at hand, describing when it makes sense to use compensation to play offense or defense. On offense, compensation can be used to communicate priorities and drive performance in the next stage of an organization’s life cycle. On defense, compensation design operates more in the background to align pay with performance outcomes. We will compare the approaches and identify circumstances where each approach can work best to help newly public companies.