February 1, 2021
Agenda: Employees Watching Exec Pay, Consultants Say
by Melissa J Anderson
Employees will be watching compensation decisions closely this year, consultants tell Agenda. Accordingly, experts say, it’s important that proxy disclosures be clear and concise, and that they explain carefully why any adjustments to executive incentive pay were made.
Robin Ferracone, CEO of Farient Advisors and a director on the board of Trupanion, says that directors were more focused through 2020 on the health and well-being of their employees and are now turning their attention to shareholder concerns.
“What companies wanted to do last year is make sure employees were safe and taken care of from a benefits perspective, a health perspective and a work-from-home perspective,” she says.
“The shareholder concerns are still there and companies are paying attention to how is this going to be viewed by the shareholder, whatever moves they’re making. And I think they’re taking advantage of the ability to have a more robust disclosure in their 10-K to explain how they thought about their workforce during this time.”