By: FT
October 12, 2020
Companies are rewriting bonus plans, switching performance metrics and ignoring missed targets so that executives do not suffer a big drop in pay as a result of the Covid-19 crisis — changes that could become controversial with shareholders in the months ahead.
While many executives are set to swallow big reductions in their bonuses after earnings and share prices have tumbled this year, a growing number of boards are taking action, according to investor groups and compensation analysts.
Changes have included adding non-financial metrics to bonus qualifications and excluding months of poor profits during the worst of the pandemic.