June 2, 2020
Scrutiny of Executive Pay Continues
– Lynn Jokela
Scrutiny of executive compensation continues as articles seem to be proliferating about company actions in response to the Covid-19 pandemic. As much as some companies are making pay adjustments, a recent Reuters review of executive compensation is circulating in the media as it says they found companies are “shielding CEO pay as the pandemic hits employees and investors.” Along with that, a recent Bloomberg article cites Nuveen as saying the pandemic will lead investors to question the existing structure of executive pay and how to incentivize executives to put greater focus on ESG issues.
Companies will take various actions based on particular circumstances but these recent media stories serve as reminders that companies should be cautious in taking action as everything seems to be under a microscope.