COVID-19 Pay Adjustments: Factors to Help Determine Most Appropriate Actions
We’ve blogged before about different reports summarizing COVID-19-related pay actions. As companies take different actions that range from adjusting metrics to shortening or extending performance periods for outstanding incentive awards, a Mercer memo provides a list of factors to help determine when it’s most appropriate to take different actions. The memo includes a tabular summary of factors to help determine when it’s most appropriate to take various actions relating to annual and long-term incentive awards ending in 2020 and for actions relating to incentive awards ending after 2020.
The memo can serve as a helpful guide for compensation committees considering potential actions. In addition to listing factors to help make determinations about potential pay actions, the memo includes a reminder of necessary action steps, including consideration of regulatory implications, potential proxy advisor reactions and considerations relating to shareholder engagement.
-Lynn Jokela, CompensationStandards.com December 9, 2020
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