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Compensation Advisory Partners (CAP) assessed human capital actions taken by companies in the Information Technology sector in response to the COVID-19 pandemic. Key findings include:
- The Information Technology (IT) sector and its Software & Services, Technology Hardware & Equipment, and Semiconductors and Semiconductor Equipment industries were nominally impacted by the COVID-19 pandemic.
- 28% of the Information Technology companies in the S&P Composite 1500 Index reported human capital actions in response to the pandemic. In contrast, 41 percent of companies in the S&P 1500 reported actions.
- Of the industries in the Information Technology sector, Software and Services (33%) and Technology Hardware and Equipment (32%) were impacted similarly, with about a third of companies reporting actions. In the Semiconductors and Semiconductor Equipment industry, only 15% of companies reported actions.
- Pay reductions for executives and board members are the most prevalent human capital actions in the Information Technology sector.
- 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 range of board pay cuts approximates the range for CEO pay cuts.
- In addition to pay reductions for executives and boards, the most prevalent human capital actions in the Information Technology sector were furloughs, employee pay cuts, and workforce reductions.
The PDF of the report provides additional data for the Information Technology 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.