Partner Doreen Lilienfeld (New York-Compensation, Governance & ERISA) and associate Veronica Wissel (New York-Compensation, Governance & ERISA) co-authored an article, "Executive Compensation Planning for Pre-IPO Companies," in Bloomberg BNA's Securities Regulation and Law Report.
The article is a must-read for companies considering going public. It explains how public companies are able to make broader use of equity-based compensation, and are required to follow more formal decision-making processes, than their private counterparts. "Many executive compensation rules and regulations under the federal tax code and securities laws are applicable to public companies but not private companies," Lilienfeld and Wissel write. The article also looks at the many legal developments in executive compensation in recent years, including The Sarbanes-Oxley Act of 2002, SEC disclosure rules, tax laws and, of course, the Dodd-Frank Act. Lilienfeld and Wissel write, "Strategic planning in the year or so leading up to a potential IPO can make the IPO process go more smoothly and allow the issuer to present its compensation programs in the best, most accurate light to its future public shareholders."