{"id":176290,"date":"2026-05-13T16:32:34","date_gmt":"2026-05-13T15:32:34","guid":{"rendered":"https:\/\/globalshares2.wpengine.com\/?p=176290"},"modified":"2026-05-13T16:34:15","modified_gmt":"2026-05-13T15:34:15","slug":"ipo-readiness-executive-equity-compensation-checklist","status":"publish","type":"post","link":"https:\/\/www.jpmorganworkplacesolutions.com\/uk\/insights\/ipo-readiness-executive-equity-compensation-checklist\/","title":{"rendered":"IPO Readiness: Executive equity compensation checklist"},"content":{"rendered":"\n<p><strong>An IPO (Initial Public Offering) is a milestone for any business. It also marks a significant turning point for executive compensation as the change from private to public brings new stakeholders, new disclosure requirements and a new level of scrutiny. As benefits like liquidity become possible, so too do lockups, trading windows and the constraints of operating under material non-public information (MNPI) come into play.<\/strong><\/p>\n\n\n\n<p>Use the below to help identify what areas need focusing on to help make this transition as seamless as possible for your executives.<\/p>\n\n\n            <h2  class=\"block-heading main-heading  heading-left\">1) Establish a Compensation Committee early<\/h2>\n        \n\n\n<p>This group will take responsibility for reviewing executive pay, approving new programmes and overseeing the move from private company norms to public company expectations. Make sure you have representatives from all required stakeholders and specialist areas at the table, e.g. HR, legal, payroll, etc. Discussions should translate into clear actions with agreed timelines.<\/p>\n\n\n            <h2  class=\"block-heading main-heading  heading-left\">2) Build a credible peer group for benchmarking<\/h2>\n        \n\n\n<p>Public company investors and advisors will want to see that pay decisions are anchored in a defensible framework. Selecting a relevant peer group can help the committee calibrate compensation levels and plan design choices.<\/p>\n\n\n\n<p>A typical peer group:<\/p>\n\n\n    <ul  class=\"gs-list-block\">\n                                    <li>reflects similar business models and talent markets<\/li>\n                            <li>sits in an appropriate size range (often measured by revenue, assets or market cap)<\/li>\n                            <li>is large enough to be statistically useful (between 12 to 20 companies)<\/li>\n                        <\/ul> <!-- .gs-list-block -->\n\n\n\n<p>A poorly constructed peer group can unintentionally justify pay that is either too low to retain talent or too high to withstand scrutiny.<\/p>\n\n\n            <h2  class=\"block-heading main-heading  heading-left\">3) Right-size the share reserve before the window tightens<\/h2>\n        \n\n\n<p>The pre-IPO period is often the best time to evaluate an equity plan\u2019s share reserve and address any needed increases. After you\u2019re public getting approvals becomes more layered. HR teams should partner with legal and compliance to ensure information is communicated to executives early in the process and that they have a clear understanding of the calendar and any constraints and practical planning considerations that may apply to them.<\/p>\n\n\n            <h2  class=\"block-heading main-heading  heading-left\">4) Codify your compensation philosophy (and prepare to disclose it)<\/h2>\n        \n\n\n<p>Public markets expect\u00a0<strong>structured, recurring long-term incentives<\/strong>\u00a0with clear rationale and governance behind that decision making. A strong compensation philosophy typically clarifies:<\/p>\n\n\n    <ul  class=\"gs-list-block\">\n                                    <li><b>objectives and guiding principles:<\/b> what you reward and why<\/li>\n                            <li><b>pay mix:<\/b> salary, annual incentive, long-term incentives, benefits<\/li>\n                            <li><b>positioning versus peers:<\/b> e.g., target percentile and rationale<\/li>\n                            <li><b>equity approach:<\/b> types of awards, sizing philosophy, refresh cadence<\/li>\n                            <li><b>eligibility and governance:<\/b> who gets what and how those decisions are made<\/li>\n                        <\/ul> <!-- .gs-list-block -->\n\n\n            <h2  class=\"block-heading main-heading  heading-left\">5)  Speaking of disclosing, be aware of the pay transparency rules that apply wherever you operate <\/h2>\n        \n\n\n<p>While the UK is not directly implementing the <strong>EU Pay Transparency Directive<\/strong> it\u2019s important to be aware of the requirements such as being open with job applicants on pay ranges, not asking applicants about pay history and publishing gender pay gap details that may exist within organizations.<\/p>\n\n\n\n<p>In the <strong>US pay transparency <\/strong>has developed through a fragmented mix of state and local laws, creating significant operational complexity for organizations managing multiple jurisdictions.<\/p>\n\n\n\n<p>Companies are required to abide by the regulations applicable in the territories where they are operating. A well-defined job architecture, setting out clear leveling criteria, consistent role definitions and documented expectations can help form the foundation of a robust pay transparency effort.<\/p>\n\n\n            <h2  class=\"block-heading main-heading  heading-left\">6) New rules mean planning for lockups, trading windows and the reality of MNPI<\/h2>\n        \n\n\n<p>A whole raft of new rules, regulations, reporting requirements and restrictions apply once a company goes public. So, while an IPO can create the expectation of liquidity, executives are also the group most likely to be restricted from trading due to MNPI, blackout periods and pre-clearance rules which can close a window quickly.<\/p>\n\n\n\n<p>As <strong>Bob Fritz, Head of Executive Advisory, J.P. Morgan Private Bank<\/strong> noted on <strong>Prosperity At Work<\/strong>, executives don\u2019t want to be in a position where they\u00a0<em>need<\/em>\u00a0to sell (for taxes, diversification or life events) but can\u2019t sell because of deal discussions or other insider information that they are party to restricting them. Listen to<a href=\"https:\/\/www.jpmorganworkplacesolutions.com\/insights\/ipos-executives-and-volatility-equity-trends-to-look-out\/\" data-type=\"link\" data-id=\"https:\/\/www.jpmorganworkplacesolutions.com\/insights\/ipos-executives-and-volatility-equity-trends-to-look-out\/\"> <strong>\u2018IPOs, executives and volatility\u2019<\/strong><\/a><strong> <\/strong>for more details.<\/p>\n\n\n            <h2  class=\"block-heading main-heading  heading-left\">7) Consider the applicable Market Abuse Regulations <\/h2>\n        \n\n\n<p>Executives and others who are party to privileged information may find themselves subject to predetermined trading plan restrictions, designed to prohibit abuse actions such as insider trading.<\/p>\n\n\n            <h2  class=\"block-heading main-heading  heading-left\">8) Don\u2019t assume your executives understand how it all works<\/h2>\n        \n\n\n<p>Equity compensation is often the least understood component of pay, even at the executive level. Preparing for an IPO only adds further layers of complexity so knowing you\u2019ve an experienced partner like J.P. Morgan Workplace Solutions onside to provide support at this time can help give you peace of mind.<\/p>\n\n\n\n<p>If you\u2019d like to find out more about how J.P. Morgan Workplace Solutions could help support your business and your executives through an IPO or other major corporate event, <a href=\"https:\/\/www.jpmorganworkplacesolutions.com\/enterprise-demonstration\/\">contact us<\/a> today.<\/p>\n\n\n\n<p class=\"has-small-font-size\">This publication contains general information only and J.P. Morgan Workplace Solutions is not, through this article, issuing any advice, be it legal, financial, tax-related, business-related, professional or other. J.P. Morgan Workplace Solutions\u2019 Insights is not a substitute for professional advice and should not be used as such. J.P. Morgan Workplace Solutions does not assume any liability for reliance on the information provided herein.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>IPO Readiness: Executive equity compensation checklist<\/p>\n","protected":false},"author":20,"featured_media":176184,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[866,621,622],"tags":[722],"class_list":["post-176290","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-equity-insight-uk","category-ipo-uk","category-ltip-uk","tag-ipo-uk"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.jpmorganworkplacesolutions.com\/uk\/wp-json\/wp\/v2\/posts\/176290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jpmorganworkplacesolutions.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jpmorganworkplacesolutions.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jpmorganworkplacesolutions.com\/uk\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jpmorganworkplacesolutions.com\/uk\/wp-json\/wp\/v2\/comments?post=176290"}],"version-history":[{"count":4,"href":"https:\/\/www.jpmorganworkplacesolutions.com\/uk\/wp-json\/wp\/v2\/posts\/176290\/revisions"}],"predecessor-version":[{"id":176294,"href":"https:\/\/www.jpmorganworkplacesolutions.com\/uk\/wp-json\/wp\/v2\/posts\/176290\/revisions\/176294"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.jpmorganworkplacesolutions.com\/uk\/wp-json\/wp\/v2\/media\/176184"}],"wp:attachment":[{"href":"https:\/\/www.jpmorganworkplacesolutions.com\/uk\/wp-json\/wp\/v2\/media?parent=176290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jpmorganworkplacesolutions.com\/uk\/wp-json\/wp\/v2\/categories?post=176290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jpmorganworkplacesolutions.com\/uk\/wp-json\/wp\/v2\/tags?post=176290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}