Falling Stock Prices Don't Hurt Bonuses
Close to half of companies asked in a recent survey said that their shareholders’ returns were lower this year than last year.
But among those 42 percent, 54 percent said they expected their bonus plan to be fully funded, CFO.com reports. “It boggles the mind. How do you articulate that to your investors?” asks Eric Larre, consulting director and senior executive pay consultant at Towers Watson.
“Compensation committees could still exercise discretion to change their 2011 formula for bonus payouts, which for a calendar-year company are typically paid in April for the previous year’s performance,” CFO.com
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