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Compensation Advisory Partners (CAP) assessed human capital actions taken by companies in the Financials sector in response to the COVID-19 pandemic. Key findings include:
- The Financials sector was moderately impacted by the COVID-19 pandemic, with 27% of companies in the S&P Composite 1500 Index taking human capital actions.
- Banks, which often have retail operations, reported the most actions (35%) – many of which were positive for employees, such as expanded time off and healthcare benefits, and one-time bonuses and additional pay for on-site workers
- The five most prevalent human capital actions by Financial Sector are expanded benefits programs, one-time bonuses for non-executives, additional payments for on-site employees (non-executives), reducing CEO base salary, and guaranteed pay continuity for non-executives
- Executive salaries were reduced, particularly in Diversified Financials and Insurance:
- Median salary reductions were 30 percent for chief executive officers (CEOs), while median salary reductions for other executives were 20 percent.
- For boards of directors, pay was cut by a median of 28 percent.
The PDF of the report provides additional data for the Financials sector.
The human capital actions that CAP is tracking include pay cuts; changes to annual and long-term incentives; furloughs; workforce reductions; suspended 401K matches; enhanced health and welfare benefits; additional pay for frontline workers; pay continuity; and workforce expansions. CAP will continue to monitor corporate public announcements of COVID-19 actions.