Insights

Current filters:COVID-19

COVID-19 and Short-Term Incentives

Nothing will be ordinary about 2020 or 2021.

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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…

Announced Pay Reductions

Pay reductions are as of May 16, 2020

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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…

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.

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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.

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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

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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…

Compensation Committee Challenges Amid COVID-19

From Inside America's Boardrooms/Diligent

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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…

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.

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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.

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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?

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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…

Retail on the Ropes, But Punching Back

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With phrases like “shelter-in-place,” “social distancing” and “flattening the curve” becoming common vernacular, the U.S. and its economy have entered uncharted waters in response to the COVID-19 pandemic. While many industries are feeling the effects of this evolving crisis, retailers…

Congress Passes $2 Trillion Stimulus Bill that Limits or Reduces Pay for Employees of Certain Companies Receiving Federal Loans or Loan Guarantees

The largest stimulus bill in U.S. history conditions the granting of federal loans and loan guarantees on recipient companies’ agreement to limit (or in some cases reduce) employee compensation for up to a six-year period.

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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…

COVID-19

The Meridian family is cognizant of the extraordinary challenges facing our clients, friends and others in these unprecedented times.

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

Revisiting Board Pay in a Time of Crisis

Many companies are re-examining their non-employee director compensation programs in light of COVID-19-related disruptions.

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There is a clear appetite to set the right tone at the top as business leaders balance (a) keeping their workforce and customers safe and healthy with (b) navigating supply chain uncertainty and weakened demand for their products and services.…