The COVID-19 pandemic has required issuers to reconsider
a range of business and operational issues, including their
approach to executive compensation and compensation philosophy.
This article outlines some of the practical considerations for
boards and compensation committees to consider when assessing their
executive compensation programs in the midst of the COVID-19
pandemic and related uncertainty.
Impact of COVID-19 on Executive Compensation
The COVID-19 pandemic has already significantly impacted
Canadian issuers and will likely continue to impact issuers for the
remainder of 2020 and beyond. In particular, the timing of the
COVID-19 pandemic has coincided with proxy season and in many cases
issuers' annual compensation and review cycles. As boards and
compensation committees assess and approve short and long-term
compensation programs, difficult questions as to how to most
appropriately incentivize and reward key employees in the middle of
a crisis compete
