The Impact of COVID-19 on Executive Compensation Programs
Posted by Daniel Rodda and Daniel Kaufman on November 23, 2020 in Thought Leadership
Given our environment, Bank Director is combining our board member and executive events into an online experience during BankBEYOND 2020! Focusing on all of the issues directors and leaders of financial institutions must know – we dive into audit and risk issues, compensation and talent challenges, and review critical areas including corporate governance, regulation and strategic planning.
Meridian Partner Daniel Rodda and Lead Consultant Dan Kaufman led a session on the impact of COVID-19 on executive compensation programs. This has been a historical year as banks (and the world) respond to the effects of a global pandemic and an economic recession. For many banks, performance goals were set before the pandemic began and payouts for 2020 performance cycles may be tracking at low (or no) payouts. What factors should be considered in determining whether incentive payouts are appropriate, and if so, what should the award value be? What changes should banks consider making to their executive pay programs for 2021? This session discusses how U.S. banks are responding to these challenges and presents a checklist of considerations for year-end executive pay decisions and 2021 program designs for executives.
Performance Alignment, Program Design