IPOs and SPACs: Key Executive Compensation Similarities, Differences, and General Considerations

Both initial public offerings (IPOs) and special purpose acquisition company (de-SPAC) transactions present unique compensation design considerations and potential impacts. We will discuss common executive compensation issues in IPOs and de-SPAC transactions, and the differences when analyzing change in control protections and closing equity grant timing. We will also discuss trends in the executive compensation area, based on our experiences with market practice and recent publicly disclosed transactions.