Skin in the game.
October 9, 2026
Not just a long-term incentive.
A MIP in a PE-backed business should not be positioned as simply the private-company version of a listed-company LTI.
The conversation needs to be about entrepreneurial participation: sharing the upside, understanding the downside, and committing to the value-creation journey - not treating a potential payout as deferred compensation.
For HR executives, that means asking the harder questions: 🚩 Are we incentivising future contribution or cementing the current organisation? Get clear on the "right talent": Someone critical today may not be right for the next phase. 🚩 Have straight conversations with the operating partner. Challenge who should participate, why, and what expectations both sides are bringing to the table. 🚩 Don't overpromise. Illustrative returns are not guarantees. The message must reflect the actual investment, terms, and risks. 🚩 Help MIP holders make an informed commitment. Create space for candid questions, explain the mechanics, and encourage independent legal and tax advice.
The HR responsibility is not simply to secure signatures or retain people. It is to connect the right future talent with a genuinely shared entrepreneurial mindset and an informed commitment to the value-creation journey.
#PortCoHRCollective #PrivateEquity #PortfolioCompanies #TalentStrategy #ManagementIncentives