There’s a lot of talk going around about a nasty stock market drop and coming recession. Even though the market seems to be less volatile at this point, many market watchers warn there could be a reckoning, especially if we see another wave of COVID-19 infections. The economic implications of even our relatively brief shutdown are also likely to have an impact for at least the next few earnings cycles. READ MORE
COVID-19 Impact on Executive Compensation – Amending Performance Goals under Equity and Other Incentive Awards
We continue our blog series on COVID-19 implications on executive compensation matters with a post that addresses considerations relating to amending performance goals under equity and other incentive awards. READ MORE
Does It Make Sense to Consider a Secular Trust for Deferred Compensation
The purpose of this Post is to highlight the question of whether, in today’s economic environment, deferred compensation monies should be secured with a secular trust. This Post is Part 7 of a 7-Part series addressing compensation adjustments that Compensation Committees could consider in order to continue to incent and retain their executive officers in today’s economy. READ MORE
Jeff Bezos could become world's first trillionaire, and many people aren't happy about it
We already have trillion dollar companies. How soon before we have our first trillionaire? READ MORE
Big Uber Shareholders Rebel on CEO’s Huge Pay Package Amid Coronavirus Layoffs
At Uber’s 2020 shareholders meeting on Monday, a group representing large Uber shareholders took issue with how much the ride-sharing giant is paying its CEO Dara Khosrowshahi while the company slashes thousands of jobs and its contractor drivers struggle to make ends meet amid the coronavirus pandemic. READ MORE
Performance-Based Compensation and the Coronavirus: 10 Key Questions
Economic disruptions resulting from the COVID-19 pandemic have caused many employers to make changes to employee compensation, such as reducing or deferring base salaries, as part of cost-cutting measures. READ MORE
Key executive compensation issues to consider during an economic downturn
In response to the current health and financial crisis caused by COVID-19, many US-based employers are assessing measures such as employee furloughs, layoffs, and adjusted executive compensation arrangements. In this article, we highlight some of the key risks and issues employers are encouraged to consider as they engage in executive compensation planning strategies, from the impact of furloughs on equity award vesting to changes to compensation and severance policies. READ MORE
CARES Act Allows Employers to Defer Employer Portion of Social Security Payroll Taxes
Under the Coronavirus Aid, Relief and Economic Security (CARES) Act that was signed into law on March 27, 2020, businesses may delay paying the employer portion of the Social Security payroll taxes on wages paid. READ MORE
Kroger extending its 'hero bonus' for employees through May 2
The company started offering the $2 per hour premium above their standard rate on March 29. It's now being extended for all hours worked through May 2. READ MORE
Coronavirus (COVID-19) And Stock Repurchase Programs
As the coronavirus (COVID-19) pandemic continues to rapidly unfold and create volatility in the market, companies are considering whether to opportunistically buy back their stock pursuant to existing or newly established share repurchase programs. When considering share repurchase programs, companies should consider sharp criticism of stock repurchase programs, which has become more heightened in light of the adverse economic impacts of COVID-19 and the federal government’s response to the crisis. READ MORE
Democrats Feel Business Heat to Delay Their Minimum-Wage Hikes
Business groups are pressuring Democratic officials in several states to postpone planned minimum-wage increases, arguing that embattled businesses can’t afford to give workers a raise as they face the coronavirus-related economic crisis. READ MORE
When Google CEO Sundar Pichai took over Alphabet, his compensation jumped to more than a quarter-billion dollars
Stock grants push Pichai’s executive compensation for 2019 to more than $280 million, topping the $200 million he received in 2016 READ MORE
Covid-19 hazard pay, workers compensation bills move through Senate committees
The Senate Appropriations Committee has nailed down how much money Vermont’s essential workers will be receiving over the next three months to supplement their base pay as they continue working through the pandemic. READ MORE
Sales compensation starting to shift under COVID-19 pressure
Sales compensation entered a tenuous position as soon as the pandemic shut down offices and retail business locations across the United States. Companies and consumers both are spending less, and as a result just about any sales projection for 2020 is going to need an adjustment. READ MORE
Economic recovery from coronavirus requires a federal minimum wage hike: Mark Cuban
The "Shark Tank" star called for a federal minimum wage of $15 per hour. READ MORE
Fewer than half of working Americans will have a paycheck in May
The millions of Americans who have lost their jobs in recent weeks due to the coronavirus pandemic will have a devastating effects on the economy going forward as workers are left without pay. READ MORE
The Covid-19 test for compensation committees
Compensation Committees are addressing whether compensation should be adjusted to reflect the effect of the coronavirus (COVID-19) pandemic on companies’ businesses and how to correlate executive compensation with changing company priorities. Here is how compensation committees can approach this challenge in the coming months. READ MORE
Exec Compensation May Need an Adjustment
The COVID-19 pandemic has left a lot of companies thinking about compensation. And, while the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) addresses a lot of issues, it lacks definitions and specificity in several important areas that pertain to executive compensation issues, according to a report from executive benefits advisory firm Fulcrum Partners, about potential consequences of the CARES Act on executive compensation. READ MORE
Initial jobless claims deteriorate further as concerns over wage deflation mount
American labor dynamics deteriorated further for the week ending April 18 as 4.427 million workers filed initial jobless claims, implying that the near real-time unemployment rate has increased to 21.1% at a minimum. READ MORE
COVID-19 Equity and Equity-Based Compensation Plan Considerations
Many public and private companies utilize employee compensation plans that are designed to deliver employer shares or cash compensation based on share price and/or other financial performance measures, which have been impacted by the effects of the COVID-19 pandemic. This bulletin discusses a number of executive compensation topics arising in an economic environment that is impacted by the COVID-19 pandemic. READ MORE