The pandemic has had a disparate effect on companies’ balance sheets, leading to soaring profits in some industries, such as online retail and groceries, and steep losses in others, for example hospitality and travel.
Newsletter Sign-up CFO Journal The Morning Ledger provides daily news and insights on corporate finance from the CFO Journal team. Meritor Inc., a Troy, Mich.-based auto-parts supplier, drafted a new cash-bonus plan for its fiscal 2020 when it became clear that the company wouldn’t meet its original financial goals, it said in a recent proxy statement. Meritor’s business took a hit during the pandemic, with sales declining 31% to $3 billion during the 12 months ended Sept. 30 compared with the prior time period.
Meritor also tweaked its long-term equity plan by lowering the targets required for senior executives to receive stock awards based on three years of financial performance through 2021. Adjusted diluted earnings per share—one of the metrics used to determine equity payouts—was reduced to 75 cents from $1.85. The company made changes to goals related to its margin for earnings before interest, taxes, depreciation, and amortization, which declined to 8.9% in fiscal 2020, compared with 11.
Most listed companies will provide details about executive compensation in 2020 when they file their proxy statements ahead of their annual meetings this year. In a sample of filings from 132 companies whose fiscal year ended before the calendar year, 89% said they revised at least one element of their short- or long-term incentive plans for 2020 or 2021, said Jannice Koors, a senior managing director at executive compensation advisory firm Pearl Meyer.
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One can only hope this means that the CEO, stockholders, etc. are giving up their 'bonuses' to their employees, who keep their businesses going.
Fits right into the lefts agenda
*Twice-in-a-lifetime as of current count.
And that mandatory 15 an hr is coming at the best time? Illegals off the books maybe?
this is terrible news
Heads they win, Tails they win!!
IMO companies are inclined to structure bonus programs incorrectly. The lowest payed usually top out at a 4%, or there about, bonus while the top paid get a much larger bonus. 4% of little is very little. Switch the percentages around and create incentive for all.
Yes, what a brilliant time to invoke a $15/hr minimum wage...Economic lunacy.
Olive garden is a Trump backing company and they know they're going to lose big. That's it!
I hope private companies will follow in these corporate companies footsteps.
I’m going to bet that the revisions only affect the rank and file and likely not the higher ups within various companies and corporations
It is only once-in-a-lifetime if you were born after 2008.
Between : World's billionaires got richer by US $ 1.9 Trillion in 2020 during this 'once in life time' pandemic..
Once in a lifetime? This is the 3rd massive recession since I've been an adult. I think the 5th in my lifetime.
Oh no don't take away my infinite breadsticks
Anderson Cooper looks down on this article.
These once in a lifetime downturns and events keep happening though—haven’t you fellas noticed?
And talk of increased minimum wage
What no mention of the actual cause: Biden is going to raise corporate taxes and hourly wages.
Eventually, that money will go to the shareholders, so they might as well get used to it.