Boards of directors had few precedents available to set pay packages as the global economy crashed due to the pandemic. Partner Melissa Burek addresses differences between the pandemic economy and the 2008 economic collapse. Additionally, Partner Kelly Malafis says that when deciding on the size of pay packages, boards of directors focus on performance.
Partners Kelly Malafis and Melissa Burek explain how market declines have negatively impacted CEO compensation, with many companies also cutting down employee headcount and benefits.
Partners Melissa Burek, Dan Laddin, and Kelly Malafis comment the lack of negative reaction around CEO pay ratio and how the flexibility around calculating the ratio might have helped reduce the number of outliers.
Partner Kelly Malafis explains that Say on Pay results are taken seriously by companies, even if results are below 70% or 80% shareholder support level, and companies are typically taking actions in the following year to respond to the low support.