IVCA Q&A Profile: John Martini, Reed Smith LLP Partner

IVCA Q&A Profile: John Martini, Reed Smith LLP Partner

January 5, 2011

CHICAGO - “ The IVCA Toolkit Luncheon series continues into the new year, with the first event on January 18, 2011. The topic is - œStructuring of Executive Compensation Arrangements in the Private Equity Environment Today and Tomorrow,-  with content provided by the law firm of Reed Smith, LLP.
 
One of the compensation experts who will present information on comp trends is Reed Smith partner John Martini. John's expertise is in executive compensation design. He sat down with the IVCA for a brief overview of the upcoming event.
 
IVCA: You will be presenting at the next IVCA Toolkit Luncheon with the subject 'Structuring of Executive Compensation Arrangements in the Private Equity Environment Today and Tomorrow.' How will IVCA members benefit by attending this event?
 
John Martini: The information will be useful to deal & operating partners at both VC & PE firms as they negotiate manager compensation packages. It will also provide important information to professionals in tax, finance and human resources.
 
IVCA: What are the top three points you plan to emphasize in your presentation?
 
Martini: First, profits interests are alive and well. Second, public company regulation and market trends are affecting compensation in private markets. Finally, private equity funds can better position themselves for exit events by carefully considering their compensation arrangements early in their involvement with the portfolio company.
 
IVCA: What type of printed or web information can attendees take home with them after the presentation is given?
 
Martini: We will have a detailed power point, which will be available to those who attend.
 
IVCA: Besides executive compensation structure, what are companies in general striving to do that is different on the benefit package front?
 
Martini: Companies are clamping down on certain traditional forms of executive compensation, such as golden parachutes. Compensation Committees are actively recommending compensation structures that will not prevent them from obtaining public company board appointments. There is continued movement toward restricted stock units. These and other major trends will be discussed.
 
IVCA: Which of the various categories of companies that you've advised seem most aggressive or progressive in looking for creative avenues of overall compensation?
 
Martini: Right now, financial services companies. Of course we will provide several specific examples at the luncheon.
 
IVCA: What are the main challenges today with corporate governance and oversight of compensation and benefit packages?
 
Martini: First and foremost, dealing with increasingly active shareholders and shareholder services. There are legitimate demands on a company to retain and recruit talent, and they have to balance protecting compensation committee members with the needs of shareholders.
 
Click here to sign up for the next IVCA Toolkit Luncheon on Tuesday, January 18, 2011, from 11:30am to 1:30pm at the Conference Center in the UBS Tower, 2nd floor, One North Wacker Drive in Chicago.