EGC Corporate Governance Practices (May 2018)

EGC Corporate Governance Practices: A Survey and Related Resources PAGE 47 Of the 168 EGCs, a majority (approximately 61.3%) 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 103 EGCs with outstanding equity compensation awards, approximately 27.2% had outstanding awards of less than 5%, approximately 30.1% had outstanding awards between 5% and 10%, approximately 23.3% had outstanding awards between 10% and 15%, approximately 8.7% had outstanding awards between 15% and 20%, and approximately 10.7% had outstanding awards between 20% and 50%. Figure 73 : N=168. We also reviewed the number of shares reserved for issuance under the new equity compensation plan adopted as a percentage of the fully diluted number of common shares post-IPO. Of the 98 EGCs with shares reserved for issuance under a new equity compensation plan, approximately 10.2% had shares reserved for issuance of less than 5%, approximately 62.2% had shares reserved for issuance between 5% and 10%, approximately 19.4% had shares reserved for issuance between 10% and 15%, approximately 4.1% had shares reserved for issuance between 15% and 20%, and approximately 4.1% had shares reserved for issuance between 20% and 50%. Figure 74 : N=98. 65 28 31 24 9 11 0 0 10 20 30 40 50 60 70 None Less than 5% 5% - 10% 10% - 15% 15% - 20% 20% - 50% Over 50% Outstanding Equity Compensation Awards (By Frequency) Number of Companies 10 61 19 4 4 0 0 20 40 60 80 Less than 5% 5% - 10% 10% - 15% 15% - 20% 20% - 50% Over 50% Shares Reserved for Issuance (By Frequency) Number of Companies