The Limits of SPAC Sponsor Earnouts - corpgov.law.harvard.edu -BoardProspects

The Limits of SPAC Sponsor Earnouts

corpgov.law.harvard.edu Apr 8 2022 BoardBlogs

SPACs have been widely criticized for their misalignment of sponsor and shareholder interests and for the dilution inherent in their structure. A major source of these problems is the sponsor’s “promote,” under which sponsors receive 20% of post-IPO shares essentially for free...
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Topics Mentioned
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