An exploration of executive pay amidst a global pandemic raises questions about fairness, alignment with stakeholders, and the responsibility of business to broader society.
With the COVID-19 crisis still unfolding around us, the uncertainties keep piling up. One of the very few things we can be certain of in the current environment relates to CEO compensation: current trading conditions mean that very few CEOs will reach their performance targets this year.
If this is the case, what does this mean for how pay will ultimately be rewarded? How will board compensation committees react? And, ultimately, how will shareholders view any changes? Will they support CEO pay packages, and any COVID-induced changes, during this year’s shareholder meeting season?
To get to the bottom of these questions, Deloitte interviewed a cross-section of CEOs, compensation committee chairs, and institutional investors to better understand views on CEO pay from multiple angles.
The topic also brings to the foreground questions of fairness, alignment with stakeholders, questions about the responsibility companies have to the broader society during a time like this.