May 18, 2020
Financial Times – Coronavirus puts top executives’ pay in the spotlight
By Patrick Temple-West
Many companies had already awarded shares and bonuses to executives in January and February, before the pandemic set in.
In a US survey conducted from March 27 to April 7, Brossy Consulting Group found that 84 per cent of businesses have taken no action on executive pay. Two-thirds of companies had already made equity grants to executives this year and 94 per cent do not plan on making changes to these awards, Brossy reported.
Equity is usually a bigger portion of total compensation than cash salaries, says Amit Batish, a manager at Equilar, a remuneration data provider that has tracked the impact of coronavirus on executive pay.
Executives are not handing back bonuses paid earlier this year for their work in 2019, says Marc Hodak, a partner at Farient Advisors, an executive remuneration consulting firm.
“No, we are not seeing many executives — I don’t know of any — saying ‘I got this award in February I am going to give back some of it now’. That is not happening,” he adds.