Title

COVID-19: Reductions in Executive Pay
Client Memorandum

Created date

5/6/2020
Recent market volatility due to the coronavirus (COVID-19) pandemic has disrupted many companies’ day-to-day operations resulting in economic hardship that has caused companies to consider or implement various measures to reduce personnel costs, including pay cuts, furloughs and/or layoffs. When implementing such personnel cost-cutting measures, a number of companies have reduced executive pay, including reductions in base salary and bonus opportunities, and some have also reduced director retainers.
 
This memo summarizes the actions that a number of companies have already taken and provides guidance for companies considering reductions in executive or director pay.