The Advisors' Blog

This Zayla Partners post warns that 2025 is a high-risk year for compensation whiplash — i.e., massive and unpredictable swings in pay outcomes. It’s certainly not a new issue, but companies are again wondering what they can do proactively to ensure their incentive compensation programs still appropriately reward executives, even if unanticipated, non-recurring events outside the company’s control threaten to disrupt the company’s carefully thought-out goal-setting process.

Here are a few things compensation committees might consider:

– Broadening performance ranges between threshold, target and maximum 

– Shortening performance periods

– Diversifying metrics

– Adding relative metrics

– Adding strategic metrics

– Incorporating more time-vested equity

Companies also sometimes delay setting performance goals or identify certain unanticipated events that the compensation committee will adjust for during or after the performance period. 

For a deep dive on this, head to the landing page for our upcoming webcast “The Top Compensation Consultants Speak” to add it to your calendar and then tune in on May 21st at 2 pm ET. I always love hearing from Semler Brossy’s Blair Jones, Pay Governance’s Ira Kay, and Pearl Meyer’s Jan Koors, and they have lots to talk about this year — including plan design and goal setting amid uncertainty and volatility.

Members of this site are able to attend this critical webcast at no charge. If you’re not yet a member, try a no-risk trial now. Our “100-Day Promise” guarantees that during the first 100 days as an activated member, you may cancel for any reason and receive a full refund. The webcast cost for non-members is $595. You can sign up by credit card online. If you need assistance, send us an email at info@ccrcorp.com – or call us at 800.737.1271.

– Meredith Ervine