Clifford Chance

Head of London Private Equity, Christopher Sullivan is joined by Sonia Gilbert and Shimin Lee to discuss hot topics in the world of management equity. With a volatile business environment, sponsors are looking towards their portfolio companies and seeking to optimise business performance through ensuring appropriate incentivisation.

This includes recognising that economics may need to be reset in order to be achievable or enhanced, and incentivising a broader base of employees beyond the typical C-suite.

Looking forward, sponsors are actively considering the inclusion of ESG metrics into management equity plans, and considering how these plans will crystallise on exit events such as IPOs or de-SPACs.