TRENDICATORS SPECIAL REPORT
How compensation is impacted by COVID 19?
Survey – July 2021
PWC
How compensation is impacted by COVID 19?
In April 2020, we conducted the survey ‘Compensation in the light of COVID-19' in order to understand what changes different companies envisaged regarding their compensation systems in light of the dynamic COVID-19 market environment.
Now, it's time to reflect on the actions taken in the past – and to take a glance at the potential long-term impacts of COVID-19 on compensation systems.
This survey provides a high-level overview of measures which were adopted by the participants in 2020 and potential further actions which are envisaged in 2021 (and beyond).
This survey includes about 30 questions, focusing on the general business context, total compensation, annual bonus/short-term incentive (STI) and long-term incentive (LTI).
Key Takeaways
About This Report
Almost two-thirds of all companies perceive their business development during the COVID-19 crisis to be better than expected, giving positive signals to the market and mitigating the sometimes rather pessimistic economic forecasts by news and media.
This positive perception is reflected in a low workforce redundancy: for around 80% of the companies, no COVID-19-related personnel reductions were necessary – for the remaining 20%, changes in the executive board, the other workforce or both were required to react to the challenging circumstances.
The overall robustness is also mirrored in the ‘relatively' low portion of firms applying for short-time allowances: almost 60% of all companies surveyed did not have to apply for federal subsidies.
In terms of pay, around one-third of the companies took action by lowering total compensation for the executive board, while for the other workforce such measures were adopted in fewer than 20% of the cases.
About the Publisher
PwC, Birchstrasse 160, Postfach, 8050 Zürich
Publish Date
September 2021