Institutional Shareholder Services and Glass Lewis recently issued guidance regarding the impacts of the COVID-19 pandemic, which included several notable compensation-related points that compensation committees may want to consider as they navigate the challenges created by the current environment.
The CARES Act includes a variety of compensation restrictions and payroll relief measures for employers and employees. This mailing reviews and analyzes those provisions.
Many companies are in the middle of compensation review season, with compensation levels and performance targets being determined and proxy disclosures being prepared in the midst of the COVID-19 crisis. Previously granted awards already may have been severely impacted by market conditions. During this time, there are a number of specific issues compensation committees should consider.
On June 23, Skadden held a webinar titled “A Candid Conversation With Investors: Expectations for Executive Compensation During Uncertain Times,” in which representatives from Institutional Shareholder Services (ISS), Glass Lewis and BlackRock joined Skadden attorneys to discuss appropriate and timely responses for handling compensation challenges during the pandemic, as well as market trends and best practices for addressing the crisis with creativity and flexibility.