1 . COVID-19
LEADERSHIP & STRATEGY
40
1 . COVID-19
With organisations around the world having faced the effects of COVID-19 since the outbreak almost a year ago , Deloitte details that “ COVID-19 has become the major issue confronting the world and its impact , in one way or another , will be long-lasting .”
With much being dependent on how the pandemic continues to develop , as well as how we react and recover will determine how organisations combat the short , medium and long term challenges .
“ In the context of executive compensation , there is already evidence that companies are making short-term adjustments to executive pay , on the basis that the economy will eventually
“ Policies will likely vary depending on the circumstances and the nature of the executive role in the post COVID-19 situation ”
— Deloitte , Executive Compensation Report 2020 recover . The only unknown is whether or not the ‘ recovery ’ will be a ‘ V style scenario ’ or a ‘ U style scenario ’ one in which the base of the ‘ V ’ is prolonged ,” stated Deloitte .
However , some leaders are expecting to see an L-shaped recovery , with life , society and capitalism fundamentally changing . While “ the decisions companies make about executive compensation in the short-term are unlikely to influence the ‘ scenarios ’,” explains Deloitte , the company does believe that they are likely to “ assist the companies in surviving whatever scenario unfolds .”
FEBRUARY 2021