A New Compensation Committee Game Plan.
INTRODUCTION
“Not since the Great Depression of the 1930s has the global
economy been under so much pressure. While there are echoes
of the financial collapse of 2008, the economic pain from the
current pandemic is far wider and deeper. Fissures have formed
in entire industry sectors and millions of employees have been
terminated or furloughed. And yet the biggest casualties of
this crisis are the tens of thousands of people who have lost
their lives, and the hundreds of thousands more who have
been hospitalized.
Given these unprecedented times,
corporations around the world have
acted in unprecedented ways. They have
found ways to create new virtual work
arrangements for large segments of their
workforce. They have kept employee
well-being at the top of their priority list.
They have found new ways to stay
connected to and interact with
their customers.
But the crisis has also taken its toll on the
workforce beyond the obvious impact
of the health crisis. Companies have been
forced to shut down large portions of
their operations, if not close their doors
altogether. And, as a result, millions of
people have been subject to furloughs,
job cuts, or hefty pay reductions.
Amid this turmoil, executive
compensation has naturally come under
an even brighter spotlight than usual.
Many CEOs and senior executives in the
companies hardest hit by the COVID-19
crisis have announced significant pay
reductions of their own, and others will
likely follow suit. Cutting pay for
executives is a visible and potentially
necessary step in stabilizing some
companies as they manage through the
crisis. It sends a positive message to both
employees and shareholders, and could
enhance, or at least limit the tarnishing of,
the company’s reputation. While some
outside observers have heralded these
early actions, others have opined that
they are too few and too limited.”
Summary
Korn Ferry has organized a committee of executive leaders who have formulated an actionable Game Plan in the form of a visually stimulating and professional version of a whitepaper, ultimately highlighting useful suggestions for leadership behaviors during times of unprecedented crisis. Their guidance is not only sincere and genuine, but all information presented is undoubtedly provided by experienced professionals.
To discover all their tips and advice, it is highly recommended to download and read the entire Korn Ferry whitepaper. See link below:
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Authors:
Don Lowman
Global Leader Rewards & Benefits
don.lowman@kornferry.com
Irv Becker
Vice Chairman, Executive Pay & Governance
irv.becker@kornferry.com
Todd McGovern
Senior Client Partner, Executive Pay & Governance
todd.mcgovern@kornferry.com
Kurt Groeninger
Senior Principal, Executive Pay & Governance
kurt.groeninger@kornferry.com
Korn Ferry is a global organizational consulting firm. We work with organizations to design their organizational structures, roles, and responsibilities. We help them hire the right people and advise them on how to reward, develop, and motivate their workforce. And, we help professionals navigate and advance their careers.