Compensation Issues in the Recovery: Setting CEO and Senior Management Compensation

Compensation during recovery from COVID-19 will be under great scrutiny, whether it’s from actions by executives and directors to reduce their own pay, short-term and long-term incentive considerations, or the recalibration of metrics for near-term incentives. This scrutiny will come from both internal and external sources as proxy advisers provide direction and boards take a second look at compensation models.

A major reason complicating compensation strategies in the face of this crisis, compared to nearly any other in history is “timing,” says Jon Weinstein, managing partner for Pay Governance. “If we think about several crises before this, they often occurred in September or October. And the timing was such that calendar-year companies had a few months to think about how they might approach pay for the following year.

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