Semler Brossy's report reveals these noteworthy stats relating to COVID-19-triggered executive and director pay-related actions among the Russell 3000 as of April 20:
- 295 companies disclosed salary reductions for management. Of those, 10% were CEO-only; 34% involved the CEO & other NEOs; and 56% involved CEOs, other NEOs and other executives.
- More than half of companies have reported a CEO salary reduction of at least 50% with a 100% reduction being the most common (29%). NEO and other executive pay reductions (to the extent determined) most commonly range from 20% - 50%.
- 194 companies disclosed director pay changes - most commonly, a 100% reduction in cash compensation.
- By sector, Consumer Discretionary (which includes, e.g., specialty retail, hospitality) and Industrials (which includes Airlines and adjacent industries) companies have represented the highest percentage of announcements at 39% and 16% of the Russell 3000, respectively.
Least represented among the pay reduction announcements are companies in the Consumer Staples, Financials, and Utilities sectors.
Relatedly, Semler Brossy's report: "COVID-19 and Executive Pay: Initial Reactions and Responses" reveals the results of its March 27 - April 7 survey of 120 companies (103 public) concerning the anticipated impact of COVID-19 on their business, and on actions taken, planned and/or considered on: (i) board pay and (ii) workforce & executive pay, benefits, and staffing.
See "Executive pay cuts a growing trend during coronavirus" from Compliance Week and numerous additional resources on our Executive Pay, Director Compensation, and Coronavirus (COVID-19) Resources pages. This post first appeared in the weekly Society Alert!