13.2 Retention Strategies During the COVID-19 Pandemic
Equity grants are primarily used for retention and motivation of critical employees, but in the current economic environment, depressed stock prices and lower LTI payouts impact these goals. What was used in response to the financial crisis of 2008 and 2009 (such as option exchanges and time-based retention awards) may not work in today’s environment with more shareholder influence on pay and more focus on performance equity. We will discuss the pros and cons of strategies such as modifications, supplemental grants and replacement awards, as well as the results of Aon’s Global Pulse Surveys with 3,000+ companies responding to see what actions companies are taking.
Yael Elbaz Roiter, FGE
, Teva Pharmaceuticals Industries (IL)
, Aon Equity Solutions (US)
, FW Cook (US)