{"id":280426,"date":"2022-06-28T19:08:00","date_gmt":"2022-06-29T02:08:00","guid":{"rendered":"https:\/\/jthelander.com\/?p=280426"},"modified":"2022-06-28T19:08:00","modified_gmt":"2022-06-29T02:08:00","slug":"thelander-cvc-digest-june-2022-cvc-unit-structure-impacts-compensation","status":"publish","type":"post","link":"https:\/\/brightturn.io\/?p=280426","title":{"rendered":"The Structure of the CVC Unit Impacts Compensation"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Welcome to the first Thelander Digest, our monthly newsletter where we explore compensation insights&nbsp;for corporate venture capital units. Each month we&#8217;ll bring&nbsp;you an exclusive look at the compensation landscape&nbsp;within different areas of private capital&nbsp;markets.&nbsp;First up,&nbsp;<strong>how does the structure of the CVC unit impact compensation?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The major structural difference between CVC units is whether they are off balance sheet or separate legal entities, or not. The former has a greater degree of independence&nbsp;in relation to the&nbsp;parent company, and this division can also make a difference in the&nbsp;types of incentives&nbsp;they receive and the value of those incentives. Let&#8217;s dive in&#8230;<\/p>\n\n\n\n<figure class=\"wp-block-image img-border\"><img decoding=\"async\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/bd4bebec-2d21-9265-6cc4-94e421d62fda.png\" alt=\"What are the other incentive in addition to base pay and cash bonus?\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Thelander data indicates:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Off balance sheet or separate legal entity CVC units are more likely to have carried interest as their\u00a0incentive, while units that are not off balance sheet are more likely to have corporate stock as an incentive<\/li>\n\n\n\n<li>Both are equally likely to have shadow carry<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image img-border\"><img decoding=\"async\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/6fff11a6-e499-cbcb-c6db-c71ad58bbae7.png\" alt=\"CVC Unit Leader - Senior Corporate Level Executive\"\/><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>However,\u00a0the cash value of that synthetic carry is significantly higher for CVC unit leaders at off balance sheet\/separate entity units than at their in-house counterparts shown in the graph above.\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Do you want to find additional CVC compensation data?<\/strong>\u00a0You can access this and many other topics for FREE by participating in our\u00a0<a href=\"https:\/\/www.cvent.com\/surveys\/Questions\/IDConfirm.aspx?s=6b57cb3a-d5bf-460d-8392-9604db661bc6\" target=\"_blank\" rel=\"noreferrer noopener\">CVC\u00a0Compensation Survey<\/a>.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Thelander is the only firm that covers the entire private capital market from your investment firm to your portfolio company&#8217;s compensation.\u00a0Did you enjoy our Thelander Digest, have ideas for future ones, or want to learn more about how\u00a0J.Thelander Consulting can help you make informed decisions when it comes to hiring, incentivizing, and retaining talent?\u00a0<a href=\"mailto:info@jthelander.com\" target=\"_blank\" rel=\"noreferrer noopener\">Email us here<\/a>\u00a0or give us a call at\u00a0305-793-8605. We love to hear from you!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Welcome to the first Thelander Digest, our monthly newsletter where we explore compensation insights&nbsp;for corporate venture capital units. Each month we&#8217;ll bring&nbsp;you an exclusive look at the compensation landscape&nbsp;within different areas of private capital&nbsp;markets.&nbsp;First up,&nbsp;how does the structure of the CVC unit impact compensation? The major structural difference between CVC units is whether they are [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[6,3],"class_list":["post-280426","post","type-post","status-publish","format-standard","hentry","category-newsletter","tag-cvc","tag-newsletter"],"_links":{"self":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/posts\/280426","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=280426"}],"version-history":[{"count":0,"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/posts\/280426\/revisions"}],"wp:attachment":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=280426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=280426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=280426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}