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.