The Decision Points That Can Make or Break Equity Compensation at Pre-IPO Companies

It’s hard to imagine a pre-IPO company that doesn’t rely on equity as a compensation strategy. Equity-based incentives help lean startups preserve cash. More importantly, they attract talent, align incentives, and facilitate an ownership culture.

In this issue brief, we break down the key decision points pre-IPO companies face when putting an equity compensation program together. We intentionally focus on pre-IPO companies as opposed to private companies that don’t intend to go public. However, many of the principles we’re about to discuss apply to companies in both situations.

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