November 28, 2022
Human Capital: 6 Questions for Comp Committees in a Downturn
As this Covington memo details, the threat of a recession is raising new “human capital” and workforce compensation issues for boards to consider. With compensation committees taking on this responsibility at many companies, it may be a topic for your next committee meeting. Here are the 6 questions the memo recommends asking:
1. Should incentive plan performance targets be adjusted?
2. Can we unilaterally reduce compensation or benefits?
3. Will we have enough shares to continue making equity grants?
4. What can be done about underwater stock options?
5. Should employer contributions to 401(k) plans be reduced or suspended?
6. What changes can be made to non-qualified deferred compensation?
– Liz Dunshee