Our world and the business environment have changed profoundly in the last few weeks and while no-one should be thinking about their pay, ultimately everyone is. Financial strain is real and feeding into the anxiety employees worldwide are experiencing. In recent weeks, there have been many positive, responsible decisions made regarding executive remuneration but nevertheless many remuneration committees are seeking guidance on how to navigate and ensure their long-term incentives (LTIs) and executive remuneration practices are robust and can withstand the new environment with its unknown challenges.
A prominent question remuneration committee are struggling with at the moment relates to LTIs, particularly regarding the making of awards in this uncertain environment characterised by share price volatility, as well as how to deal with the vesting, settlement and exercise of awards.
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