Many organizations have experienced stock price declines ranging from 15% to 25% so far in 2016; for some, the decline follows moderate to significant declines in 2015. Depressed stock prices may lead to significantly lower values of outstanding grants and pending performance plan payouts, and the impact of the market decline would extend well beyond equity grant practices.
For 2016, companies and their compensation committees face a challenging environment for compensation program design and decisions, as they must balance the need to motivate and retain key talent in an uncertain and volatile economy without raising the ire of investors and proxy advisers.
Complexities of Executive Compensation and Rewards
Let us shape your executive rewards programs with Mercer’s expert consulting and comprehensive data, trusted by many firms before you.
- Improve your ability to attract, retain, and motivate key executive talent.
- Align pay with your organization’s strategic needs and relevant talent comparators.
- Realize value in ownership transactions.
- Keep compliant with regulatory, legislative, and shareholder requirements and guidelines.
Thank you for your interest in "Impact of 2016 Stock Market Decline". If you do not have your pop-up blocker enabled, you will be prompted by your browser to download the article or to view it in a new window. In addition, you will receive an email from Mercer shortly with a link to access the PDF.