Publication

The past year has been a remarkable one for nearly every company. The COVID-19 pandemic and associated disruptions resulted in unforeseeable performance outcomes for many companies. Senior executives spent large portions of their time addressing challenges that would have seemed unimaginable at the outset of the year. In some unique cases, compensation committees responded by making adjustments to pay plans; most, however, stuck to their original plans. As the fallout from the pandemic and recession plays out, boards are keeping a close eye on how they incentivize management.

Boards and management teams are also facing a growing demand for environmental, social, and governance (ESG) information from a range of stakeholders. Some compensation committees have already begun tying executive compensation to ESG metrics or plan to do so in 2021.