Agenda – Investors Ask: Are CEOs Special Enough for Special Awards?

Note to boards: Consider the diminishing marginal returns of incentive grants on top of incentive grants. You should not have to bribe a CEO to stay in the job.

Companies in the industries hardest hit by the pandemic granted extra long-term incentive awards to executives last year, according to a report from Compensation Advisory Partners. The New York-based consulting firm reviewed 49 companies in the S&P 1500 that granted their top management special long-term incentive awards during 2020 and the first half of this year. Many cited the need to hold on to their top talent during a global health crisis that hammered company finances and caused mass layoffs as the world economy ground to a halt.

Agenda – Investors Ask: Are CEOs Special Enough for Special Awards?

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