We’re on track to set a record number of IPOs this year. As Benjamin Graham once noted, a telltale sign of a late bull market is an unusual increase in demand for newly listed securities. Or, as Howard Marks recently stated, “too much money chasing too few deals.”
I would guess looking at the incentives would answer your question. Rich valuations beget richer NEOs. Where else can you get such outrageous compensation figures as in public companies? I can’t even imagine the current temptation for NEOs to fill their boots. Extreme, likely.