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Podcast

Episode 44 — PE Views: Private Equity Looks to Share-Based Schemes to Incentivise Non-Managerial Staff

January 20, 2023
Following recent press coverage, PE sponsors are exploring share-based schemes and other plans to incentivise non-managerial staff.

Equity and co-investment opportunities have long served as tried and tested strategies for buyout firms seeking to incentivise management and align key management interests with those of the PE sponsor. However, PE sponsors in the US have recently received credit for extending share ownership opportunities beyond key management — and in some cases, to all employees — using innovative employee incentive schemes. Amid the ongoing cost-of-living crisis, the “great resignation,” and increased investor focus on ESG credentials, will more PE sponsors explore share-based incentive schemes as a way to reward and retain non-managerial portfolio company staff?

In this episode of Connected With Latham, London private equity partner David Walker speaks to fellow London partner Kendall Burnett about key considerations for an array of scheme structures that PE firms may employ.

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Endnotes