Recommendations

Appropriate Structure & Level of Compensation for the Portfolio Company's Employees

Ilya Alkhimov, Svetlana Kotka

May 20, 2021 — 1 min read

Explanation

The structure and compensation of portfolio company employees and management should induce excellent long-term performance, reward sustainable financial and non-financial results, and ethical behaviour. Balancing compensation in the context of the particular industry, the expertise and contribution of the individual, and the long-term needs of the company are important responsibilities of the board. In many cases, consideration of these factors is led by a remuneration committee.

Recommendation

In private equity investments, portfolio company executives often have incentives built in at the time the fund structures and executes the original investment. The role of the board (or compensation committee) should therefore focus more on ensuring that existing incentives continue to be appropriate for both the company and shareholders as the company's circumstances change over time.

The board should determine the appropriate levels of compensation for the portfolio company's executives and periodically evaluate and review the compensation levels and make changes to them as appropriate. Conflicts of interest in setting or reviewing director compensation levels should be avoided where possible and managed in an open and constructive manner in all cases.

Cino attracted €500K investments at Latitude59

Huge congratulations to our client Cino on their achievement (€500,000 investments👏) at Latitude59! The eleventh Latitude59, attended by 3,000 people, was themed “Be Bold”. Almost 400 startups from 61 countries applied for Latitude59’s traditional pitch competition. Both early-stage and more mature technology companies were invited to the

International Sanctions in Estonia and the EU. The Subject.

The terms used in this article are defined in the ISA, in the legal act implementing international sanctions, the Financial Action Task Force’s (hereinafter: FATF) recommendations made in 2012 and the 2013 methodology dictionary, or in EU guidelines and other guidance materials.

One Person as a Board Member and as a Compliance Officer – The Proper Way of Applying and Conflicts of Interest

Compliance with the principles of good corporate governance shall start with the board and its responsibility to foster the long-term success of the company and secure its sustained competitiveness.

Personal Holding Company for Tax Planning

In this post, we will review how entrepreneurs and business owners can use foreign companies for tax optimization.