How should companies address the impact of the coronavirus and the economic downturn on incentive compensation?
Against the backdrop of the global pandemic and economic downturn, compensation committees and management teams are meeting to make 2020 compensation decisions. Companies in all industries need to consider the potential implications of a possible recession on their short- and long-term incentive compensation programs. In particular, recent stock price volatility is affecting equity plans, including the number of shares companies grant.
The current environment has made forecasting business conditions one to three years out nearly impossible for annual incentives and performance-based long-term incentives.
Download the article to learn more about how companies should manage incentives in uncertain times.
As you prepare for your compensation committee meeting, speak with a consultant to discuss how this development may affect you.