TALENT

Mature BusinessTALENT

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  • HR's Role During Transition
    Game Plan
    In-Depth

    Initial Public Offering (IPO)

    When a company goes public, the spotlight on it becomes hot and intense. You must be fully aware of major issues that immediately come to fore in the “Three C’s”: compliance, communications and compensation.

    • Compliance. Get used to a new three-letter word you’ll be hearing often: SEC. The U.S. Securities and Exchange Commission requires all public companies to file numerous documents, starting with the S-1 Public Offering Filing.
    • Communications. Keeping your employees informed is critical. Equally critical is the content and style of those communications. Hold employee meetings regularly.
    • Compensation. Now that your company is publicly traded, you have a new form of employee compensation: stock options.
    Game PlanGame Plan

    Game Plan

    • For compliance: Your newly public company must file documents including an annual report (10-k), annual proxy, 8-k filings, and Forms 3, 4 and 5. And to comply with Sarbanes-Oxley laws, you must conduct a thorough review of internal controls.
    • For communications: Keep your ear to the ground for potential morale issues, such as when your stock rises or falls, when executive compensation is made public, or when headcount actions are taken.
    • For compensation: Map out a plan to use stock options as an incentive and retention tool, and ensure that your plan conforms to your overall compensation philosophy.