Founder and Management Equity at IPO: A Rugged-ly Handsome Story
A quick read through their prospectus shows that management sacrificed base salary for solid equity stakes in the Company: the founders (including the CEO) retained 15-20% of the company. The CFO holds approximately 1.5% of the shares pre-IPO, while the rest of management received what appears to be between 0.05% and 3.00% stake.
With annual sales just under $30 million, approx. 110 employees and only a few million in net profit, Rugged is a good benchmark for similarly-sized companies in executive compensation. Management teams, take note: here, the non compete provisions match severance paid (as they should): the CEO and CFO would 24 months severance pay and matching non competition period, while other management agreed to 12 months severance and 12 months non compete.
Data points to remember.