With everything seemingly going wrong in the world as we know
it, the compensation of relatively well-paid executives may be one
of the least-worrisome aspects of the COVID-19 pandemic, but it is
one that will surely need to be addressed nonetheless. The pandemic
has inflicted significant economic harm and uncertainty for many
companies, including with respect to executive compensation
programs. That uncertainty has prompted companies to quickly
evaluate potential adjustments to their executive compensation
programs in response to dramatically changed circumstances,
including with respect to base salaries, annual cash incentive
plans, and long-term incentive compensation. In addition, the
Coronavirus Aid, Relief, and Economic Security Act (the CARES Act),
which the President signed into law today, introduces additional
complexity in the form of limitations on compensation for companies
that avail themselves of relief under the CARES Act. This alert
briefly summarizes
