Many Strengthening Focus on Improved Pay-for-Performance, Risk Assessment
Despite the impending economic recovery, most U.S. companies are not planning to restore executive pay cuts or freezes made during the economic crisis in the next six months, according to a new survey by Watson Wyatt, a leading global consulting firm. As they prepare for continuing increased public scrutiny of executive pay, many are avoiding further short-term changes and focusing instead on longer-term shifts toward better pay-for-performance and assessing their compensation programs within the new context of risk management.
According to the survey, 63 percent of companies are currently not planning to reverse or restore changes made to executive salaries in the next six months. Additionally, fewer companies are considering short-term changes such as reducing salaries (2 percent are considering it now, compared with 10 percent in March). The survey also found that a vast majority of employers (92 percent) are not planning to reduce bonus opportunities or eligibility requirements.
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