Compensation in a Changed Economy

In recent weeks, many have asked The Conference Board about the effect of the economic downturn and the events of September 11 on companies’ 2002 compensation plans. Of primary concern were changes in pay increase budgets (as a percent of payroll) for 2002. To provide an answer, The Conference Board surveyed its human resources-related Councils in late October. Council members were asked to report the percent of payroll originally budgeted for all wage and salary increases for 2002, and any subsequent revisions to that budget. For comparison purposes, they were also asked to report the 2001 budget.