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 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. 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. Ensure that your plan conforms to your overall compensation philosophy.
Need Business Insurance?

Need Business Insurance?

For more than 200 years businesses have trusted The Hartford. We can help you get the right coverage with an online quote.
Iniciar cotización
The content displayed is for information only and does not constitute an endorsement by, or represent the view of, The Hartford.