EGC Corporate Governance Practices (May 2018)

EGC Corporate Governance Practices: A Survey and Related Resources PAGE 22 Equity Compensation Plans Approximately 71.2% of issuers adopted a new equity compensation plan, and approximately 28.8% did not. Of those EGCs that adopted a new equity compensation plan, approximately 53.1% included an evergreen provision, approximately 28.3% included a clawback provision, approximately 36.8% permitted option or stock appreciation rights (“SAR”) repricing without shareholder approval, and approximately 2.2% included a stock ownership or retention requirement. Figure 33 : N=848. A majority of issuers (approximately 68.8%) had outstanding equity compensation awards at the time of the IPO. We reviewed the number of outstanding awards at the time of the IPO as a percentage of the fully diluted number of common shares post-IPO. Of the 583 EGCs with outstanding equity compensation awards, approximately 27.4% had outstanding awards of less than 5%, approximately 29.7% had outstanding awards between 5% and 10%, approximately 22.1% had outstanding awards between 10% and 15%, approximately 9.6% had outstanding awards between 15% and 20%, approximately 9.9% had outstanding awards between 20% and 50%, and approximately 1.2% had outstanding awards over 50%. Yes; 604 No; 244 Adoption of New Equity Compensation Plans (By Frequency) Yes No