Issue Brief Posted on: 4/22/2020
Restoring (Underwater) Compensation Incentives in a Post-Pandemic Economy
Just as most companies were wrapping up their 2020 incentive plans, the COVID-19 crisis hit. So far, most companies have left their outstanding incentive equity programs unchanged. But as the post-pandemic economic picture becomes clearer, we expect to see greater pickup in restoring incentives and retention, especially among companies with a lower media profile.
In this issue brief, we outline important considerations in evaluating potential modifications to outstanding incentive awards, followed by a spectrum of incentive restoration solutions. Discover the key legal, accounting, proxy, and shareholder implications along with the accounting and proxy rules as they apply in these contexts.