Alan Johnson, managing director of New York-based compensation consultant Johnson Associates Inc., said increased CEO pay [for 2019] was “pretty rational” given the performance of firms last year.
Year-end pay for 2020, however, is “likely to be down significantly,” with senior executives apt to see pay decreases “at least as bad as everybody else,” Mr. Johnson said.
The fact that 2020 is also a presidential election year could have an impact on year-end pay for chief executives, or at minimum scrutiny surrounding these disclosures, Mr. Johnson said.
…Amid the economic downturn caused by the coronavirus, Walt Disney Co. Chairman Robert Iger is one of several executives who will forgo his salary, while Disney CEO Bob Chapek will have his salary cut in half, Bloomberg reported on March 30.
Moves such as this may conflict with the status quo in the asset management industry, however, to project stability in turbulent times to investor clients. According to Mr. Johnson, the message for many money managers to their customers and employees is, “We are here. We are strong.”
Pensions & Investments / May 18, 2020