Top Three Principles for Managing Small Equity Plans

Many public and pre-IPO companies have long-term incentive plans (LTIPs) with fewer than 200 participants. And, counterintuitive as it sounds, the accounting for small plans like these can be as tough to manage as it is for plans with participants numbering in the hundreds of thousands. At the same time, small plans have other challenges that are different from their large-cap counterparts.

Because of these differences, there’s no one-size-fits-all approach. We routinely field requests for advice on this topic given our experience as both practitioners and advisors in the space. In this issue brief, we unpack some of the key principles we share with sponsors of small plans.