June 15, 2020
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Partners Doreen E. Lilienfeld, John J. Cannon III and Gillian Emmett Moldowan, Of Counsel Linda Rappaport, and associates Matthew Behrens and Desta Hailu authored “The Impact of COVID-19 on Executive Compensation,” which discusses the impact of COVID-19 on annual equity grants, including the effect of the crisis on issues such as grant timing, grant pricing, long-term incentive targets, repricing, sell-to-cover transactions and employee messaging.
The COVID-19 pandemic had a swift and volatile impact on business operations and the financial markets. The crisis arising from COVID-19 and the efforts taken to prevent its spread occurred simultaneously with the annual incentive award cycle of many companies, forcing companies to address incentive setting and employee retention in a rapidly changing environment.