Watson Wyatt & Co. directors will recommend that the company conduct an IPO of about 25% of the firms total shares early next year. Shareholder approval is required for changing the companys charter and bylaws to permit the IPO to go forward. The company is owned almost entirely by active employees. The IPO will involve shares held by both the company and existing shareholders. Watson Wyatt expects to continue holding about 75% of total shares. The company plans to file a registration statement with the SEC in December. Its alliance partner, Watson Wyatt Partners, the European arm of the benefits consulting firm, will remain a private partnership.