Update
Newsletter
By Greg Gautam and Matthew P. Chiarello
As we previously reported in prior SW Benefits Updates (links below), the challenges presented to management and corporate boards from COVID-19 are significant. Among other considerations, companies might adjust 2020 performance goals, delay compensation decisions or change the mix of equity awards by making more full-value grants. In recent months, proxy advisors Institutional Shareholder Services (“ISS”) and Glass Lewis have published guidance with respect to these and other governance issues (summarized here and here).
To provide further clarity with respect to executive compensation issues, ISS has released the first of four case studies setting forth a framework for the adjustment of annual incentive goals and reductions to CEO annual incentive awards in light of COVID-19. The full case study is available here and we offer a brief summary of the study below. We encourage you to read the case study in its entirety.
[Read the full newsletter here]