CAP has extensive experience working with private companies, from smaller family-owned businesses to significantly larger enterprises. We help private-companies address unique compensation challenges – not the least of which is finding appropriate benchmarking data. To help fill this data gap, CAP conducts original surveys of private-company compensation levels and practices. Other challenging compensation issues that CAP helps private companies navigate include:
- The design of a compensation program that is competitive with publicly traded peers;
- The choice between cash long-term incentives, and real or phantom equity;
- If real or phantom equity is provided, how to value it, and how to provide liquidity;
- The balance between keeping sensitive financial information private and providing management with line of sight;
- The retention of ownership control while creating a succession plan and fostering an ownership culture; and
- The amount of profit and/or ownership that the company shares with management and employees.