Case Study 4 of 4: Replace absolute goals with relative total shareholder return (TSR) goals with no reduction to CEO STI opportunity
Given the continued uncertainty the COVID-19 pandemic has inflicted on the earnings outlook for almost every corporate issuer in 2020, ICS took a “pen-to-paper” approach to illustrate a series of potential frameworks Compensation Committees could consider for adjusting annual incentive goals or metrics in 2020 in an effort to establish a more realistic structure for properly incentivizing executives.
This is the last in a series of four case studies. All frameworks are intended to be illustrative in nature and do not reflect a specific recommendation on behalf of ISS Corporate Solutions (“ICS”).