Insight

Executive Compensation may set the tone for a Company’s response during COVID-19

What should companies do about executive compensation in the wake of COVID-19?

John Luce

John Luce

Principal, Advisory M&A Services, KPMG US

+1 312-665-1112

Gregory Kopp

Gregory Kopp

Advisory Managing Director, Strategy, KPMG US

+1 202-533-8011

Elizabeth Chidichimo

Elizabeth Chidichimo

Director, Mergers & Acquisitions, KPMG US

+1 312-665-1560

Jason Brooks

Jason Brooks

Director Advisory, Strategy, KPMG (US)

+1 213-430-2117

Robert Berkowitz

Robert Berkowitz

Manager Advisory, Strategy, KPMG US

+1 917-438-3865

The COVID-19 lockdown has caused many companies to look for cost reductions wherever they can find them—including in the executive suite. But there are difficult trade-offs in cutting executive and director base pay and incentive compensation. In this paper we describe how companies can balance the need to control costs with the need to keep leaders motivated. These decisions will have impact both internally and with shareholders. 

Executive Compensation may set the tone for a Company’s response during COVID-19
Practical tips for adjusting executive comp in the wake of COVID-19