“Waterfall Distribution” – What’s That? The Private Equity Pitch to Employees

Sklover Working Wisdom

The Private Equity Pitch to Employees. “In The “Private Equity Pitch” to Employees: More and more employees are finding their employers being purchased by Private Equity investors. It “just” requires commitment, lower salaries, diminished benefits, and a whole lot of blind faith.

Equity 130

“Umbrella Negotiating” – Best Response to Private Equity “Hurricane Tactics”

Sklover Working Wisdom

After three generations of family ownership, during which the staff grew from two to 150, the grandchildren-owners received an inquiry from a Private Equity firm about their interest in possibly purchasing the company. Pretty soon, the Private Equity firm, their lawyers and their accountants began reviewing the company’s financial records, bank statements, leases, employment agreements, all as part of their “due diligence,” upon which their formal “offer” would be based.

Equity 100

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Long Term Incentive Compensation: 10 Basic Concepts

Sklover Working Wisdom

Frankly, we expected that Kathy, as a Human Resources professional, would have – or should have – known about the basic mechanisms of her long-term incentive compensation. Nor are the problems derived from Benefits and Compensation failing to provide our clients with all necessary calculations. Let’s take a few minutes to make sure you understand the basic concepts of long-term incentive compensation: 1. Equity ” – “Equity” is a rather broad concept.

“How does an offer of ‘equity’ from an employer work?”

Sklover Working Wisdom

Question: I am being made an offer from a company owned by a “Private Equity” firm. They have said the offer will include “equity” – which is new to me. Equity” refers to an ownership interest in a company. If the company is a corporation, the “equity” may be in stock, stock options, or other kinds of ownership interests. If the company is a limited liability company, the “equity” may be in membership units.

Equity 133

“Private Equity Buying Your Employer? Resist These 11 Employment Negotiation Tactics”

Sklover Working Wisdom

ACTUAL “CASE HISTORIES ”: For many years I have counseled and negotiated on behalf of employees when their employers (a) are being purchased by Private Equity investors, (b) are owned by Private Equity investors, and (c) are being sold by Private Equity investors. I’ve also represented employees being recruited to work for Private Equity-owned employers, commonly referred to as Private Equity “Portfolio Companies.”. Benefit Reductions and Compensation Redesign.

Equity 109

“What happens to my employee equity if the company is sold or IPO’d?”

Sklover Working Wisdom

Question : I was fascinated about your bright explanation of equity plans in your newsletter entitled “ Long Term Incentive Compensation: 10 Basic Concepts.” First, carefully review your Equity Plan, or have someone do so for you. The first step in your analysis of what happens to your equity is “What does the Equity Plan say, if anything, about this circumstance?” Usually what happens upon a sale of the company is covered in an Equity Plan, but not always.

Equity 126

“Employer’s Sole Discretion” in Contracts, Handbooks and Compensation Plans: Six Strong Arguments to Defeat It

Sklover Working Wisdom

On this basis, Brandon felt confident he would achieve an overall increase in compensation. The company Bonus Plan provided that any issues as to eligibility, entitlement or calculation of bonuses would be “determined with finality by the Company Compensation Committee in its sole and absolute discretion.”. Brandon’s attorney helped him appeal these decisions to the Company Compensation Committee. “Everyone is entitled to their own opinion.

Robbery by Repurchase Rights – A Private Equity Story

Sklover Working Wisdom

First, the people putting the deal together were part of a highly experienced and highly regarded Private Equity firm with a proven track record in automotive private equity businesses. That also included eliminating health care contributions, cutting paid vacations in half, and slashing everyone’s compensation. It was “the Private Equity way of doing business.” Four years of hard work, at low pay, without benefits, all for a dream that just disappeared.

Equity 122

“Need a Work Document from HR? Afraid to Ask? – Here’s How”

Sklover Working Wisdom

This is especially the case where (a) you have signed a non-compete agreement, (b) you are asking to be reimbursed for your “losses” in leaving behind unvested equity awards, etc., (c) “A secret spoken finds wings.”. – Robert Jordan.

2021 130

Good Leaver – Key Words & Phrases

Sklover Working Wisdom

It is most often used in relation to incentive compensation, equity compensation and deferred compensation Plans. Good Leavers are usually allowed to keep their unvested compensation or equity benefits, which can continue to vest over time. Good Leavers also are often permitted extensions of time to exercise benefit rights, including those relating to stock options. What is the meaning of: “GOOD LEAVER” ?

2013 109

RSU’s: Restricted Stock Units – 8 Essential Insights

Sklover Working Wisdom

The salary, bonus and benefits she was offered by each were considerable. In recent years, we’ve helped a significant number of employees who were offered or granted employee compensation in the form of “Restricted Stock Units” (“RSU’s,” for short.) Some of our clients have been very pleased with the significant compensation they have achieved through grants of Restricted Stock Units. “The large print giveth and the small print taketh away.”. – Tom Waits.

2019 100

Offered a Position and Shares in a Start-Up? – 10 Traps in the Legal Papers, and Your Ways Out

Sklover Working Wisdom

On a salary lower than he was used to, and minimal benefits, he built quite a powerhouse in just a few years. As part of the compensation package, they are offering me shares or units in the new or young company. It is not easy because lawyers for business founders or owners – particularly “Private Equity” owners, almost always make it difficult, and intentionally so. “The spirit of our verbal agreement was true partnership, but.

2016 100

“Employer Ask You to Sign an Agreement? Ask Your Employer to Pay Your Legal Cost”

Sklover Working Wisdom

Rumor had it that a private equity firm might be interested in buying Charlene’s employer, and it was for this reason that a new, revised Confidentiality and Inventions Agreement was being required.). Expect a fee on the higher side if your agreement refers to or “incorporates by reference” any other agreement or benefit plan, as this would require that each of these other agreements be reviewed, as well, because they hold meaning in the interpretation of the original agreement.

2015 118

“When laid off, can I get my unvested options vested?”

Sklover Working Wisdom

I am currently employed by a large tech company and I have received equity compensation throughout my tenure. Some of this equity has yet to vest. My experience is that a great many “equity” plans provide for continued vesting so long as the employee is terminated without cause, and the employee does not compete directly or share confidential informatio n. By “equity” I refer to stock, stock options and other securities of a company. Question: Hi, Alan.

2013 109

FMLA – Great Tool to E-x-t-e-n-d Employment

Sklover Working Wisdom

Aquilino, Margaret and Kevin each spoke to their family members’ therapists, doctors and health care providers, who in each case were willing to certify that each of their respective loved ones would benefit by having him or her spend more time with their loved one. In general, a FMLA leave of absence is unpaid, but employee benefits should continue during your leave. “ The cure for anger is delay.”. – Seneca.

2016 100

Zoom Continues To Add To Its Workforce After A Historic Year

Career Realism

The Zoom Cares initiatives are focused on three core areas: education, social equity, and climate change. Comparably also recognized Zoom for company leadership, compensation, company culture, perks and benefits, diversity, work-life balance, and best company for women.

2021 83

3 Companies Hiring Remotely For Sports Lovers

Career Realism

Benefits and perks at GumGum include: Remote work stipend Ongoing professional development opportunities Flexible time off Student loan assistance Dog-friendly offices To apply or learn more about working at GumGum, check out the company's careers page.

Affirm Is Defining A New Remote-First Work Culture

Career Realism

Affirm went all in on this change, which included a drastic shift in the benefits the company offers to employees. The new compensation structure aligns to a state's highest-paid major city, metro, or state average, determined by using cost of labor data.

2021 61

Friday Five: Tech, HR Tech and a Good Night’s Sleep


It’s always a good time to talk about it, but this week in particular, when we’re pouring over the sensational profit margins of the giants, it’s a good to reflect on who exactly is reaping those benefits. Fast Company talked to Chris Bolte of Paysa about tech employment trends, including compensation, retention and who’s hiring – and keeping – the best talent in the industry. TGIF, friends!

2016 40

Another Chain Broken:

Sklover Working Wisdom

Here’s what happened: The Case: Our client, a commissioned salesperson in the petrochemical industry in the Southwest, was quite dissatisfied by a sharp reduction in his sales commission plan, put into effect with little notice, after the company changed hands to a Private Equity group. Almost immediately, compensation programs, benefits and even paid vacations and sick days were cut back. Non-Solicitation in the Petrochemical Industry.

2016 133

How to Eliminate YOUR Gender Pay Gap

Ms. Career Girl

Be sure to look at your career not just from a compensation standpoint, but from a quality of life perspective, as well. Decide on your compensation “package.”. Compensation comes in more forms than just salary, so consider negotiating for a package that includes not only salary, but other benefits your company provides that are of value to you. Some common benefits are healthcare coverage, retirement plans and employer matches, Health Savings Accounts, life insurance.

2018 131

Closing Candidates: A How-To in a Hot Job Market

Career Alley

This candidate, who was directly recruited out of her organization, had to choose from one of four offers – all with a 10% increase in base salary and a significant equity component. In a hot market, companies have to get creative when closing candidates so they may decide to offer more (either in base, OTE or equity) to excite their prospective employee. Often times making a move comes down to salary or equity but there are other factors that can make a huge difference.

2012 227

How To Evaluate a Job Offer

Career Alley

Now back to that offer you received, is the compensation package in line with expectations? What is the overtime or compensated time off policy? What are the benefits? How does the compensation package compare to the industry? Salaries may be structured to offer an equity piece or bonuses. If you choose to negotiate the pay or benefits, the more research you have done, the better you can present your case.

2011 219

Two (or More) Job Opportunities? – 18 Elements of Comparison – [Part 1 of 2]

Sklover Working Wisdom

Without her reaching out, she was contacted by a recruiter with a very intriguing opportunity, with (a) better salary, (b) but lower bonus opportunity, (c) greater retirement benefits, but (d) later retirement age, (e) a new, exciting product line to market, but (f) a small marketing budget that gave her limited discretion. For example, in some industries, base salary is only 10% of overall yearly compensation. Example: What are the tax ramifications of being awarded equity?

2018 100

“Give 90 days resignation notice or repay bonuses – Is that legal?”

Sklover Working Wisdom

It is, indeed, legal for employers to require employees to agree to repayment conditions (such as this one) on bonus, commission or equity compensation. Employers are free to set conditions upon employees’ participation in bonus programs, equity programs, commission programs, and benefit programs. This is the way the law looks at it: the employee is free to say, “No thanks, I’d rather not be required to give notice; I just won’t take a bonus, or equity, or commissions.”

2014 126

Brief History of HR Tech Trends & Technology Acquisitions for #HRTechConf


iCims receives $35 Million in funding from Susquehanna Growth Equity. ADP buys benefits administrator outsourcer, SHPS. Bullhorn Software acquired by Vista Equity. Vista Equity Partners acquires SumTotal Systems for $120 million. Taleo acquires Worldwide Compensation for $16 million. Recent History of Human Resources Technologies. A couple weeks ago, the news broke that Oracle made yet another purchase in human resources technology.

Promise Received at Work? Ask These Two Critical Questions

Sklover Working Wisdom

Without her seeking it, one of the company’s vendors made her a job offer with greater compensation and a clear career path to executive level responsibilities. Want to Ask for Equity from Private Equity or other Private Owners? Use our “ Model Letter for Requesting Management Equity from Private Equity or Other Private Owners. “People with good intentions make promises. People with good character keep them.”. – Author Unknown.

2018 100

Do You Have What It Takes To Work For A Startup Company?

Tim's Strategy

A new company needs to keep spending down, so even if you’re great at salary negotiations , your compensation will almost certainly be less than you’d get in a bigger company. On the upside, there is usually equity that might be worth a lot in a few years, but that won’t pay your bills next month and there are no guarantees. Would you consider working for equity? How important are benefits to you? This is a guest blog post by Leslie Ayres.

2013 83

Hindsight Is 20/20: Living Your Culture In The Next Normal

Career Realism

5) Significant concerns arise for Workers Compensation insurance. To lessen the anxiety of your employees, consider adding or extending mental health benefits that are personalized and confidential, and offer telehealth services.

2020 58

“Side Letter” – Use to Amend “Standard” or “Existing” Agreements

Sklover Working Wisdom

Employer’s Successors Bound, Too: It is wise to mention in the Side Letter that it is binding on both parties’ successors and those to whom they may assign the benefit of the Main Agreement. “If you can’t change your mind, then you’re not using it.”. – Bashar Kushandwizdom.

2020 130

how companies can build more equitable workplaces … and what’s getting in the way

Ask a Manager

The C-suite, the CEO, the VP of Sales, the Head of Operations, whoever it is who needs to explain that the culture of this workplace is one of equity and inclusion. As a leader, you need to look at your team and identify where the inclusion and equity challenges lie.

2021 46

Millennials Aren’t Special – They Just Have Great Timing


Another report claims Millennials are unique because of the things they look for in employers, and that list includes cultural fit, career potential, work/life balance, compensation, challenging environment, company mission and innovation. Naval Ravikant, AngelList’s CEO and one of Silicon Valley’s most prolific angel investors, just raised $400 million dollars from a Chinese private equity firm and was interviewed about it on CNBC.

2015 113

Know Who Your Employer Is? – You May Be Wrong.

Sklover Working Wisdom

The implications could be huge, including your job security and rights to benefits, compensation, and stock or stock options. An employer may provide generous benefits, pensions and even stock options TO ALL of their employees – but NOT TO SOME of their employees – at the same time. All of Skibiski Lumber, Corp’s employees – all six of them – are enrolled in the benefit, pension and stock option programs. “During the day, I don’t believe in ghosts.

2017 100

“Survivor Demotion” – When a Lower Level Job Is Preferable to Layoff

Sklover Working Wisdom

Bearing in mind his age and the poor job market, as well as the fact that his hefty compensation package made him a likely target for budget-cutting, Howard and his wife consulted us to determine a best course of action. It’s simply undeniable that in many situations, people of greater talent and experience – but unfortunately for them, higher compensation – are probable candidates for layoff. . “It is not necessary to change. Survival is not mandatory.” . - W. Edwards Deming .

Layoff 116

“Garden Leave’s Little Secret: It is Not Very Enforceable”

Sklover Working Wisdom

As we do for all of our clients, we asked Carolyn to send to our office all of her “workplace papers,” including offer letter, all agreements signed, employee handbook and benefit and equity plans and agreements, for review prior to our consultation. . During that period we will pay your salary and provide benefits, but not accrued vacation, sick days or bonus. Here’s 18 Smart Steps to Guide You. Complexity (at work) has opened a great divide between.

2013 116

I fear workplace violence, but also getting fired if I complain. Suggestions?

Sklover Working Wisdom

Having a written “record” of your concerns and fears, the many good reasons for them, your Police Report and your request to your employer, can only help you obtain the many advantages and benefits of the concept we invented called “involuntary resignation.” Question: I am very fearful of another employee who was recently discharged from a mental hospital, who has openly stated how much he hates and despises me.

2013 144

How to Attract Top Talent in a Competitive Market

Corn on the Job

After all, you can’t expect to be able to compete for the best candidates if you don’t offer the type, and level, of compensation that potential hires value. A case in point is to consider creative benefits such as stock options or equity in the business; health benefits; time off for voluntary work, or matched donations; and support of professional or personal development through coaching, mentoring, or further education.

2014 66

11 Commandments For Smart Negotiating

Resume Bear

These market conditions provide a great opportunity to negotiate an excellent compensation package, but only if you understand how. At the same time, the employer’s primary concern isn’t negotiating the least expensive compensation package it can get away with. Are you comfortable with a low salary and a large equity stake?

2010 180

“Your Best Time to Beat a Non-Compete”

Sklover Working Wisdom

By this I mean (i) salary, (ii) bonus opportunity, (iii) possibility of equity, (iv) title, vacation and the like. And employers know that, too; they typically note only the rewards of salary, bonus, title, benefits, equity, vacation, car, etc. When do various benefits start? “The wise are betrayed only once.”. - German Proverb.

5 Ways to Structure Your HR & Recruiting Consultant Fees


Five Types of Consulting Compensation and Fees. While your compensation structure as a consultant is uniquely up to you, it didn’t take long, however, to observe the norms that are already established. Since I often advise startups in the human resources and recruiting industries, I often take on a fee based consulting in addition to equity and in some cases I’ve also taken on a fee plus commission. Companies compensate Nascar drivers by sponsoring them.

2016 43

“Can I solicit customers of my former employer?”

Sklover Working Wisdom

That would prove that you have “confidential information” after you left your employer, and that you are using that “confidential information” to your benefit. Over the last few decades, the advantages of being employed by others – including long-term compensation, possible equity in the company, job security and retirement benefits, all of which are slowly but surely disappearing – make self-employment an increasingly attractive option for many people.

2013 118

When Leaving Your Job, How to Take Your Colleagues With You

Sklover Working Wisdom

Martina’s job was to create a “culture of innovation,” to the benefit of all, which she did with passion and success. A Powerful Way to Motivate Others to Join You is to Offer Them “Equity”: Perhaps the best way to motivate colleagues to consider transitioning either with you or after you have done so is to offer them “equity,” that is, a chance to have some sort of “stake” in the product of their future efforts, in some shape, form or fashion. Unemployment Benefits AA.

2010 116

Confidentiality and Non-Disclosure Duties – The Four “Situational Exceptions”

Sklover Working Wisdom

Although that definition may seem overly complicated and wildly expansive, it is actually a simpler version of what we usually find in employment agreements, equity awards, employee handbooks, and company policies. To permit those secrets to be shared, it is almost always required that the prospective purchaser sign a Non-Disclosure Agreement, commonly called and “NDA” in which it agrees not to share the information with others, or use the information for their own benefit.

2016 100