April 20, 2020
Executive Base Salary Planning
– Lynn Jokela
A couple of weeks ago, I blogged about Pearl Meyer’s quick poll on the impact of COVID-19 and executive compensation plans. The firm also recently published results from a poll on executive base salary planning and includes responses from over 380 participants. Here’s an excerpt:
– About half of poll respondents said 2020 pay actions have already been made and for the other half, 45% have 2020 pay actions that are usually made in April or May and the other 55% later in the year
– For companies that usually set pay in April or May, 25% said they plan to freeze executive base salaries but more than 70% haven’t decided what to do yet
– For companies that make executive pay decisions later in the year, over 60% said it’s too early to tell what they will do and another 24% are considering base salary freezes for 2020