Meeting of SEC Small Business Capital Formation Advisory Committee: Pulse of the Public Markets; Compensatory Offerings for Gig Economy Workers

Location:Committee members and panelists will participate via WebEx - see Outlook invitation for link. Public will be able to view on
Date:Friday, January 29, 2021
Time:10:00 – 2:30 p.m. (ET)

10:00Call to order; Introductory Remarks by Commissioners

Overview of Annual Report from the SEC’s Office of the Advocate for Small Business Capital Formation

Sebastian Gomez Abero and Jenny Riegel of the SEC’s Office of the Advocate for Small Business Capital Formation will provide an overview of the Office’s FY2020 Annual Report, with a focus on the state of small business capital formation. The report includes data from various segments of the market and provides perspective on the impact that the COVID-19 pandemic is having on small businesses, including small and emerging businesses, mature and later-stage businesses, and small public companies. The report also provides data on challenges faced by minority- and women-owned businesses, businesses in communities affected by natural disasters, and rural businesses.


Pulse of the Public Markets

The Committee will explore what is happening with smaller public companies. While large IPOs tend to get press coverage, the Committee will discuss trends among smaller public companies that may not be making it into the news. Representatives from trading venues will share some of the dynamics they are observing regarding smaller public companies, as well as innovations that are taking place and how the markets are responding.

  • Martin Alvarez, Chief Commercial Officer, Long Term Stock Exchange
  • Cass Sanford, Associate General Counsel, OTC Markets Group
  • Jeff Thomas, Senior Vice President, Head of Western U.S Listings and Capital Markets, Nasdaq
  • Carolyn Saacke, Chief Operating Officer, Capital Markets, NYSE

Lunch Break


Compensatory Offerings for Workers

On November 24, 2020, the SEC proposed amendments designed to modernize the framework that allows employees and other workers to receive equity compensation from their company. The Commission issued two proposals for public comment:

  • A package of technical updates to Securities Act Rule 701 (which provides an exemption from registration for the issuance of compensatory securities by non-reporting issuers) and Form S-8 (the Securities Act registration statement for compensatory offerings by reporting issuers); and
  • A five-year pilot program subject to percentage limits, dollar limits, and other conditions, that would permit an issuer to provide equity compensation to certain “platform workers” who provide services available through the issuer’s technology-based platform or system.

Committee members will discuss the two proposals and their experiences with equity compensation.


Wrap-up and Adjournment