March 25, 2020
Consider Everything During Crisis
– Lynn Jokela
The coronavirus crisis and market volatility has left many wondering what they can do about compensation decisions made before the crisis ensued and if they haven’t already been made, what they should do. This blog from Pay Governance says two things have made this crisis different: the timing of events and rigidity of say-on-pay protocols. Because the crisis is different this time around, the blog says “everything should be on the table” – consider, discuss, deliberate everything – that includes:
– Exercise of discretion
– Addressing mid-stream incentive plans
– Reassessing equity grants
– Re-think long-term performance periods
– Dealing with out-of-the-money share awards
The blog touches on each of these considerations – which should help comp committees as they begin, and what will likely be, ongoing deliberations.
For compensation committees looking for resources, here’s a memo from Skadden that also runs through recommendations to consider…