TOPIC: Employee Benefits

Impact of COVID-19 on Bank Compensation Plans

The impact of the COVID-19 pandemic on both small and large financial instiutions in the United States is undeniable.  The immediate impact on stock prices is already evident and unemployment has reached unpredicted levels.  The long-range impact of this pandemic is yet to be determined.  As the pandemic plays itself out over the next several months, we fully expect the banking industry will stay calm, not overact, and plan strategically.  

In the attached document, we examine how COVID-19 has impacted compensation plans in 2020 and possible incentive and bonus plan design considerations for both 2020 and 2021 in light of this crisis.