How to manage executive pay during the pandemic – The National

How to manage executive pay during the pandemic – The National

Organisations must carefully consider how they treat performance-based compensation to retain talent, says Varun Khosla of Mercer Middle East. Actions taken by the organisations across the GCC countries are very much in line with trends seen globally.. Approximately 30 per cent of organisations have made salary reductions ranging between 15 per cent to 25 per cent for the next three to four months.. In times like these, as economic conditions continue to evolve and employees continue to live with work-related insecurities, CEOs and senior executives across the GCC have shown strong leadership and thoughtful decision-making by leading the austerity measures sending an important message to the organisation stakeholders (shareholders, employees, suppliers and society).. Half way through the year, with no end in sight of the pandemic and 2020 annual business targets already seeming unrealistic, companies have started deliberating the treatment of 2020 variable pay plans, which is determined by employee performance.. With 2020 turning out to be an unprecedented year, boards, remuneration committees and senior leadership teams across organisations can consider the following approaches to adjust their executive Short-Term Incentive (STI) and Long-term Incentive (LTI) plans.. “¢ Set wider performance goal ranges, for example plus/minus 10 to 15 per cent