When economic conditions change drastically in a mid-year cycle, it creates obvious challenges for management and boards who must reevaluate planning and projections. Executive compensation and bonus plan is one board process that is often affected.
In this episode, Jim Kzirian, Partner, Meridian Compensation Partners, offers advice to compensation committees in light of recent economic conditions.
- What kind of discussions should compensation committees have about potentially tweaking executive pay and bonus plans given current economic conditions?
- Are there acceptable methods for awarding great performance in a down cycle where stock price has underperformed?