Understanding SPAC Mergers & IPO in Relation to Executive Compensation

In this brief video, Jon Szabo, Partner at Meridian Compensation Partners, provides a high-level overview of the differences between IPO and SPAC mergers.

Jon also explains similarities and differences regarding executive compensation planning in IPOs and SPACs. The outcome for both types of transactions is basically the same—a company goes from private to public. One key difference is the timeline. Companies can spend years planning an IPO, whereas SPAC mergers must be completed within months.

Additionally, SPACs tend to be more green in terms of existing pay structures and provide a clear understanding of how public company executive and board pay works.