This client alert addresses certain complex issues facing public
company compensation committees as companies are adapting to the
economic impact of COVID‑19. We also point out the
restrictions placed on executive compensation for companies that
receive loans or guarantees under the new Coronavirus Aid, Relief
and Economic Security Act (CARES Act).
Compensation Considerations
Delay Compensation Decisions
Most companies have recently completed or are in the process of
their regularly scheduled annual compensation review to establish
compensation programs for 2020, including adjusting salary levels,
setting performance targets for both short‑term cash bonus
plans and possibly multi‑year performance‑based equity
grants and issuing annual "refresh" equity grants. In
light of the current economic uncertainties, to the extent not yet
completed, companies should strongly consider delaying these
decisions until later in the year to allow time to prioritize
essential
