FORWARD LOOKING RESPONSE TO THE IMPACT OF COVID-19 IN 2021 AND BEYOND
Annual incentive plans
Equity compensation
and not exclusively an investment choice . In a sense the executive is a ‘ captive investor ’.”
FORWARD LOOKING RESPONSE TO THE IMPACT OF COVID-19 IN 2021 AND BEYOND
Annual incentive plans
When it comes to executive compensation programs , Alvarez & Marsal explains the importance of taking into account the impact of the COVID-19 crisis going forward . With the virus continuing to have significant impact around the world for organisations and economies , “ the scope and extent of the current crisis is unknown .” While organisations will have set targets for 2021 , the continued evolution of the virus may result in the need for revisions . If so , Alvarez & Marsal adds that “ companies may wish to adopt a ‘ wait and see ’ approach as opposed to taking swift action to adjust performance metrics too quickly and avoid the need for multiple revisions to the performance criteria , which would undoubtedly be viewed negatively by shareholders and shareholder advisory firms alike .”
Equity compensation
Similar to annual incentive plans , equity compensation – in particular stock – have experienced negative outcomes as a result of COVID-19 , due to the outbreak causing significant value decreases for
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“The coronavirus crisis is causing unprecedented , negative economic impacts in an accelerated fashion ”
— Alvarez & Marsal businesschief . com