Hugessen Consulting recently conducted a Fall 2020 COVID-19 Director Pulse Survey to gather director views and corporate actions related to year-end incentive decision-making amidst the COVID-19 pandemic.
Key takeaways include:
- Application of STIP discretion among the respondents is anticipated to be widespread (68% plan to apply discretion), with the prevalence highest amongst those in the Energy sector (82%). LTIP PSU discretion is expected to be significantly less prevalent at 11% (plus 9% ‘too early to say’)
- Approximately half of respondents anticipate modifications to 2021 STIP and LTIP design; at least partly in response to lingering uncertainty going into the new fiscal year
- ESG considerations are continuing to receive increased airtime in incentive discussions. Over half of respondents are incorporating ESG metrics this upcoming year or the following year. Of these respondents, 33% said that COVID has accelerated implementation