“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. That is the essence of the “Private Equity Pitch.”.

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
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

“How to request ‘ownership interests’ from Private Equity employers.”

Sklover Working Wisdom

The company owners are what is called “Private Equity,” and as almost all “Private Equity” owners, they are looking to grow revenue by 30% in 3 years, and sell the company in 3 to 5 years. In the informal discussion around compensation they did not mention any kinds of ownership. Private Equity owners of companies engage in their efforts with one major goal in mind: selling the company in 3 to 5 years, at a large profit.

Equity 109

Breaking Down the Gender Equity Pay Adjustments at Salesforce.

The HR Capitalist

Salesforce just made a move to provide pay equity increases across its workforce to eliminate any and all gender pay issues, job by job. Data on the compensation of employees in all departments at all levels of tenure apparently revealed Robbins and Seka’s suspicions to be warranted. Activists are still likely to be skeptic, but it's refreshing to see Salesforce take a run at this and then give an overall number for the adjustments they gave to eliminate pay equity across gender.

Equity 124

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.

PODCAST: e4 - This is HR - Women's Soccer Pay Equity, Management by 2Pac, Productivity Woes

The HR Capitalist

The gang covers: -- Shots fired in pay equity between the USA Women's National Soccer team and the US Soccer Federation, which have different talking points when comparing total comp of the USA Men's and USA Women's National Soccer Teams (3:19). -- A Iowa state Director of Human Services gets canned for broad use of 2Pac lyrics in his management style , which begs the gang to wonder aloud how much 2Pac is too much if you're trying to lead a department of public servants.

“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

“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

“How do I ask a new employer for an equity stake?”

Sklover Working Wisdom

I am wondering if it is acceptable to ask for an equity stake, and if so, how to do so? Answer: Dear John: It is not very common for a prospective employee to ask a prospective employer for an equity stake right off the bat – without either “side” knowing the other all that well. The employee provides services and the employer provides compensation. Being an equity stake owner can also result in serious and long-term legal obligations and significant financial liabilities.

Equity 109

“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.” Sometimes provisions regarding “equity” (stock, options, restricted shares, etc.)

Equity 122

Voluntary – Key Words & Phrases

Sklover Working Wisdom

Key Words & Phrases Non-Compete's and Confidentiality Raise, Bonus, Compensation Repayment Obligations Specific Terms and Provisions Stock, Stock Options, "Equity" Wording and MeaningBe on the lookout for. Voluntary,” as in “Voluntary Departure,” “Voluntary Resignation” or “Voluntary Waiver”. You’re quite likely to find the word “voluntary” in several work-related legal documents. If you do notice it, that word may be very advantageous to you.

2019 100

“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

Offer Letter or Company Plan – Which One Governs?

Sklover Working Wisdom

When Lemuel insisted on an explanation, she responded, “Your Offer Letter stated clearly ‘Your compensation consists of a base salary, an annual bonus and health care coverage. No other compensation is being offered to you. To receive any additional form of compensation, you and an authorized representative of the Company and you must sign another document that provides that to you.”.

2017 100

RSU’s: Restricted Stock Units – 8 Essential Insights

Sklover Working Wisdom

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. A unique and sophisticated model to gain significant protections to both your employment and your equity. “The large print giveth and the small print taketh away.”.

2019 100

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. Bonus Key Words & Phrases Raise, Bonus, Compensation Stock, Stock Options, "Equity What is the meaning of: “GOOD LEAVER” ?

2013 109

PREACH IT: A Home Without Equity is Just a Rental With Debt.

HR Capitalist

How about this: "A home without equity is just a rental with debt". Compensation Economics HR InsiderMichael Lewis is a great writer. Be a better HR Pro by reading his classics, which include Moneyball and The New, New Thing. His latest is The Big Short , which chronicles the Wall Street culture that led to the stock market crash of 2008. . As with most things business-related, the talent and HR quotes are everywhere in this book.

How Buffer Approaches Salary Transparency (It's Kind of Cool)

The HR Capitalist

Also, attention anyone who is interested in current events, which finds some highly compensated workers moving out of high priced areas (SF, NYC, LA) to work remote. There are generally 5-6 geographical grades in a compensation plan. Compensation Current Affairs Employee Relations

2020 113

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

Sklover Working Wisdom

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. Intellectual Property You Create: I have seen clients hired into companies with promises of equity that vest over time, provided they take a very low salary for a while.

2016 100

“Forming or Joining a Start-Up? – 16 Questions that Need to Be Answered”

Sklover Working Wisdom

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.” Might different classes of ownership – such as preferred stock shares, different classes of “membership units,” or other kinds of equity – be created to give one or other kinds of owners greater interests or more control? “Assumptions are the termites of relationships.”.

2016 100

In Defense of Not Broadcasting Salaries in the Jobs You Post.

The HR Capitalist

I believe we can be trusted with pay equity moving forward. Compensation RecruitingWhen you try to optimize your openings for Google Jobs, you'll turn to the Google Jobs schema for guidance.

2020 132

Cashless Exercise – Key Words & Phrases

Sklover Working Wisdom

Many employees are awarded the right to purchase company stock at a discount, or are given stock options as part of their overall compensation packages. For more information, insight and inspiration regarding Stock, Stock Options and Equity at work, just [ click here.] . Acquiring Key Words & Phrases Stock, Stock Options, "Equity What is the meaning of: “CASHLESS EXERCISE” ?

2013 116

“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.). Sklover, of Sklover & Company, LLC, a law firm dedicated to the counsel and representation of employees in matters of their employment, compensation and severance. “I busted a mirror and got seven years bad luck, but my lawyer thinks he can get me five.”. – Steven Wright.

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

Sklover, of Sklover & Company, LLC, a law firm dedicated to the counsel and representation of employees in matters of their employment, compensation and severance. Basics Before Negotiating Before Resigning FMLA FMLA, COBRA and Pregnancy Monthly Newsletter Library Resigning from Your Job Severance Packages Stock, Stock Options, "Equity “ The cure for anger is delay.”. – Seneca.

2016 100

Alleged Pay Discrimination at Google Makes Marc Benioff and Salesforce Look Amazing.

The HR Capitalist

Back in late 2015, I reported on proactive moves by Salesforce to do pay equity increases across its workforce to eliminate any and all gender pay issues, job by job. Well, here's another reason to go for pay equity if you're a company like Salesforce - to keep the DOL from knocking on your door and playing hardball, like they just did at Google. . "In You'll likely end up making the same equity increases Salesforce did, but it will look forced and you won't get credit for leading.

2017 81

VP of Equality Is The Rationalized Replacement for VP of Diversity at Salesforce.

The HR Capitalist

Throw in the fact that you can’t pay new hires anything they want without messing up your comp equity, and most companies don’t make the progress they’d like to. Earlier this year,Salesforce chairman and CEO Marc Benioff revealed that his company spent about $3 million in 2015 to equalize compensation across the company, closing the tech giant’s gender pay gap. Communications Compensation Employee Relations HR Insider Innovation

2016 112

Massachusetts Loses Mind: Passes Law Outlawing Employers Asking For Salary History.

The HR Capitalist

Before you slay me for being anti-pay equity, stop. California and New York have laws that address pay equity on the books, which I support. Compensation RecruitingMassachusetts has lost its mind. In a prime example of lawmakers not understanding business, the state has outlawed employers from asking interviewees about their salary history. Here's a quick rundown from Forbes : "Massachusetts has just passed the most comprehensive law regarding the subject of equal pay.

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

Workology

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. HR diversity diversity in tech employment equity facebook online advertising Social Media startupsTGIF, friends! Time to make plans for the weekend, to kick back and relax, and to catch up on the week’s best reads.

2016 46

“Can my bonus plan be changed due to a supposed mistake, after agreed to in a contract?”

Sklover Working Wisdom

While employment-related contracts are binding agreements between two parties – the employer and the employee – compensation-related “plans” are different: they are (a) payment arrangements and conditions created by the employer, that (b) are sometimes binding, and sometimes not, depending on their wording, and (c) usually provide that they can be changed at any time, at the discretion of the employer. .

2014 109

GETTING RICH OFF STOCK OPTIONS: The Big Lie.

HR Capitalist

Here''s a taste of what I''m talking about: "Let’s examine the Kris Dunn history with forms of equity: 1. Compensation day at the Capitalist. Compensation I''m up over at Fistful of Talent talking about the fallacy of stock options and something sneaking into the scene called "liquidation preferences". Young KD works for just formed Fortune 500 company and due to decent timing on when he joined, has stock options upon IPO and, at one time, can count a payoff near 7 digits.

2014 60

The Future of Work

Sklover Working Wisdom

— The Clear Trend is toward Performance-Based Long Term Incentive Compensation —. Long Term Incentive Compensation is increasingly based on a wide variety of “performance metrics” and less often merely on “time served.”. There are generally two types of vesting in Long Term Compensation Awards. In years past, simpler performance measures such as the employer’s stock price would set the “trigger” for vesting of incentive compensation awards.

2013 131

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

What are the Different Types of Career Option in Investment Banking?

Imarticus Learning

Investment Banking jobs can also be found in large private Equity institutions like Blackstone. In the light of such responsibility, pressure and significantly lucrative compensation, Investment Bankers are then expected to work very long hours and do not have great work-life balance. Fundraising: Investment bankers also help raise money from both the private equity market as well as the public markets on behalf of their clients.

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. You are trying to understand where you fit in to the firm’s compensation structure. The gender pay gap in the U.S.

2018 157

Shareholding Model

Career Development Plan

TweetSharebar TweetShareholding model Shareholding model, converting personal energy into equity Chapter 9 p.9 A colleague of mine said that the fact that you can get shares in a company compensates for the lack of job security. I thought that I had a secure job! Can you explain this concept of shareholding to me? There will

2006 100

New Feedback

Sklover Working Wisdom

They develop experience and are backed-up and supported by highly-compensated expert employment attorneys. Lately we have received a lot of wonderful feedback. We hope you don’t mind our sharing one recent and heart-warming example with you.

2020 130

TODAY'S JOB MARKET: Peak Economic Cycle Edition

The HR Capitalist

If you have compensation issues, now's the time to be aggressive to do equity increases in key roles that are under-comped vs the market. Peak economic cycle = Turd Sandwich for the companies who don't like to spend much on recruiting and have a "trail" strategy related to compensation in key roles. If the chart below were an investment chart, you'd be looking to start scaling back tech stocks in your portfolio right now.

2016 97

5 Nifty LinkedIn Hacks That Make Executive Job Search Easier

Executive Career Brand

Determine what compensation to expect in your new job. In November 2016, LinkedIn rolled out a new feature, LinkedIn Salary, that allows you to compare your salary against others with similar jobs, aiding you in future salary/compensation negotiations. If you’re actively in a job-hunt, you know that it’s hard and takes a lot of time. I suspect that if you knew about ways to make it easier, and save time doing the job search things you need to do, you’d grab on to them.

2017 196

how can companies be fair to people who can’t work from home?

Ask a Manager

There’ve been a lot of conversations around how to build in equity for those who can’t work from home. How do we compensate for that? This post, how can companies be fair to people who can’t work from home? , was originally published by Alison Green on Ask a Manager.

2021 47

Beware of “Likely Successor Risk”

Sklover Working Wisdom

So, if you are given a formula for incentive compensation based on specified metrics, bear in mind that you may be swimming “against the tide,” and so seek more reasonable metrics, or a minimum guarantee, at least during the first year or two. So, if you are promised compensation or equity that vests over years, request accelerated vesting if you are terminated without cause, or if you are denied the promotion you were led to expect.

2017 100

Caution:

Sklover Working Wisdom

So, if you are given a formula for incentive compensation based on specified metrics, bear in mind that you may be swimming “against the tide,” and so seek more reasonable metrics, or a minimum guarantee, at least during the first year or two. So, if you are promised compensation or equity that vests over years, request accelerated vesting if you are terminated without cause, or if you are denied the promotion you were led to expect.

2017 100

How to Leverage Another Job Offer (The Right Way)

Ms. Career Girl

While money is important, it’s smart to consider other negotiable terms in your compensation package, like equity, perks, and bonuses. If they’re worried about how that bigger paycheck would impact pay equity for the rest of the team, then you should come up with ways to help them solve that problem. This might be where alternative forms of compensation, such as additional vacation days, come into play.

2019 160