COVID-19 Insights

Current filters:COVID-19 Insights

COVID-19’s Incentive Impact: While Most Companies Wait, Companies with Early FYEs are Forced to Act

We are increasingly participating in board-level discussions focused on how to ensure that management teams stay focused, engaged and properly incentivized.

Posted by and on

When the COVID-19 pandemic started to spread across the United States, boards of directors initially focused on ensuring the safety of their employees and customers and managing to stabilize their businesses for uncertain times ahead. Early on, many companies were…

COVID-19 and Short-Term Incentive Designs

The design for 2021 will hinge on how to best motivate executives in a dramatically altered business environment.

Posted by and on

Our Meridian Client Update published May 28, 2020 discussed the impact of COVID-19 on 2020 Short-Term Incentive (STI) plans and how Committees may determine appropriate payouts (if any) at year-end. Payout decisions for 2020 STI in many instances will be…

Announced Pay Reductions

Pay reductions are as of June 30, 2020

Posted by and on

Meridian is currently tracking announced pay reductions within the oil and gas space. The largest number of reductions to date have been announced in the oilfield services sector. We’re planning on regularly updating this list and re-posting at https://www.meridiancp.com/insights/energy/ Oilfield…

Boardroom Comp Under COVID-19

As seen in Corporate Board Member - Director pay will, of course, be transformed in the current environment. But what that means and how it plays out will vary widely. A roadmap.

Posted by on

Pre-pandemic, board compensation practices had become static and homogeneous, even as the role of non-employee directors continued to expand—but that was before the pandemic launched a global economic crisis. CBM recently spoke with Jim Heim, a lead consultant with Meridian…

Compensation Committees: What to Do With 2020 Bonus Plans?

It’s been an unprecedented year for everyone, compensation committees included.

Posted by on

At the onset of COVID-19, the popular advice for adjusting annual bonus pay was to “wait and see.”  Now several weeks in, some companies have begun restructuring bonuses. What actions are they taking? In this episode, Chris Havey, Partner &…

COVID-19 and Short-Term Incentives

Nothing will be ordinary about 2020 or 2021.

Posted by on

For many companies, it is unlikely that there will be significant (if any) payouts under the executive or managerial bonus plans for 2020. Alternatively, for those that do have payouts, it is similarly unlikely that plan mechanics alone will determine…

Executive Salary Reductions in Oil & Gas: What’s the Message?

Through 4/30 we have tracked nearly 60 energy industry companies that have announced CEO salary cuts, the most of any industry group in our COVID-19 database.

Posted by on

The fact that so many energy industry companies have reported salary reductions should not be surprising; the double black swans of record production and cratering demand have driven industry stock prices further down on average (-58%) than in any other…

Announced Retail Executive and Outside Director Pay Reductions

Since the onset of the COVID-19 pandemic in the U.S., Meridian continues to monitor the unprecedented actions taken by retailers.

Posted by and on

Since the onset of the COVID-19 pandemic in the U.S., Meridian has monitored the unprecedented actions taken by retailers to enhance financial flexibility and offset the substantial impact to operations associated with prolonged store closures. These actions have included eliminating…

Executive and Director Pay Reductions

This is the first in a series of Client Updates on executive compensation/governance topics related to COVID-19 that we are publishing to assist our clients as they navigate these challenging times.

Posted by and on

Over the last several weeks, as the global economy shut down, we have seen a steady stream of U.S. companies announcing store and facility closures, reduced hours for workers, layoffs and furloughs. In addition, in response to cash preservation needs,…

Director Compensation: Key Considerations During COVID-19

From Inside America's Boardrooms/Diligent

Posted by on

Much like executive compensation, director pay will be met with institutional shareholder scrutiny in the months ahead. Investors and proxy advisors will scrutinize stock option awards, meeting fees, and whether board pay remains steady amid lay-offs and revenue declines. How should…

The $2 Trillion CARES Act Imposes Limits On Employee Pay

As seen in Corporate Board Member - The largest stimulus bill in U.S. history conditions the granting of federal loans and loan guarantees on companies’ agreement to limit employee compensation.

Posted by and on

On March 27, 2020, President Donald Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (‘‘CARES Act”) which passed both the U.S. Senate and the House of Representatives earlier last week with bipartisan support. The CARES Act…

Compensation Committee Challenges Amid COVID-19

From Inside America's Boardrooms/Diligent

Posted by on

Most compensation committees finalized executive compensation plans, targets, and awards at the end of February, never expecting that COVID-19 would come next. Now boards are left to navigate a crisis environment with a very unpredictable future. In this episode of…

The Impact of Recent Pay Actions on Severance Arrangements

Our recent posts have summarized a range of compensation actions across the oil and gas industry that companies have either announced or are considering in response to the current market environment.

Posted by on

These actions have included pay reductions, work furloughs, and layoffs. Among other matters, companies likely need to evaluate the impact of these actions on severance benefits. Multiple types of arrangements provide for cash and other benefits in the event of…

Proxy Advisors Issue Policy Guidance on COVID-19

Institutional Shareholder Services (ISS) and Glass Lewis recently issued guidance on the application of their proxy voting policies in light of the COVID-19 pandemic.

Posted by on

Since we are now in the heart of proxy season, corporate boards and management teams have raised questions regarding whether ISS and Glass Lewis would consider the impact of the COVID-19 pandemic in either their proxy voting policies or the…

COVID-19

The Meridian community recognizes the extraordinary challenges facing our clients, friends and others in these unprecedented times.

Posted by and on

First and foremost, we hope you, your families and your colleagues are staying safe and healthy during this global health crisis. We appreciate that normal business operations for many companies have been upended due to the COVID-19 pandemic, and that…

Should We Cut Outside Director Compensation?

Posted by on

In our last two postings, we highlighted a number of potential compensation implications for oil & gas companies in the current environment. Beginning with this update, we’ll select some key topics to review in a bit more depth. And, since…