CAP’s latest article on pay ratio considerations in the context of COVID-19 is summarized by the Center On Executive Compensation. If a company experiences a material change in employee population or compensation arrangements, it must recalculate its pay ratio. To this end, CAP urges these companies to be especially mindful of how furloughed employees, determination date and supplemental ratios factor into the disclosure.

The Center On Executive Compensation recommends CAP’s tracker of company responses to COVID-19 to monitor how disruptions impacted compensation and human capital programs.

Compensation Advisory Partners explains how delaying goal-setting for incentive plans could offset potential impacts that the coronavirus has caused.

Upcoming Events See All

May 21, 2024

Knowing When and How to Modify Your Long-Term Incentives

Cincinnati, OH

Effective, tailored incentive plans are critical to motivating employees and ensuring alignment with shareholder interests. High-performing organizations design long-term programs that complement the company's…
  • Susan Schroeder
  • Louisa Heywood

Jun 06, 2024

Where SEC Rule-Making, Shareholder Reporting, and Plan Design Collide

Boston, MA

The SEC has issued a flurry of new rules covering insider trading, clawbacks, proxy reporting, and more. These rules have plan design implications and,…
  • Daniel Laddin

Jun 06, 2024

Striking the Right Balance: Discretion in Incentive Plans – Taboo or a Must?

Boston, MA

Discretion is often considered taboo in the executive compensation world. Compensation committees that use discretion in determining incentive payouts risk receiving criticism from investors…
  • Shaun Bisman