US companies pull back on planned executive pay cuts

Only 15% cut pay to extent planned

Companies within the Russell 3000 did not follow through with planned cuts to executive pay due to Covid-19, with only 15% cutting pay to the extent previously publicised, according to new research from Diligent Institute.

During the Covid-19 pandemic 647 businesses within the Russell index announced pay cuts. While 79% of them went through with a reduction, the vast majority cut pay less than anticipated. Meanwhile, 18% of those actually saw a rise in the CEO's base salary, with a further 3% maintaining the CEO's salary at current levels. One of the sectors hit hardest by the pandemic was the consumer discretionary sector, which includes hospitality, restaurants, leisure and retail. Of the 201 companies in this sector that announced CEO pay cuts, only 16% went through with the planned pay cut amount. ...