Eight Companies Adjusted Executive Pay to Exclude Tariff Impacts, Analysis Shows

Compensation Advisory Partners released an analysis on Wednesday examining how 22 large public companies with significant tariff exposure handled the effects of tariffs on executive compensation. The analysis reviewed proxy statements filed before April 17, 2026.

It found that eight of these companies adjusted performance metrics to exclude tariff impacts from calculations for bonuses and incentives. The tariffs in question stem from measures announced by President Trump on April 2, 2025, which affected global supply chains.

Among the companies that made adjustments, four—RTX, Ross Stores, Gap, and MGP Ingredients—did not disclose the specific dollar amounts by which executive pay was boosted. For example, at RTX, the compensation committee decided in January 2025 to neutralize tariff impacts on business metrics for CEO Christopher Calio's pay, resulting in his total compensation of $27.7 million, including a $5.1 million bonus.

Ross Stores, the compensation committee approved adjustments on May 21, 2025, to strip tariff costs from bonus and long-term incentive calculations. CEO James Conroy received $17.4 million in total pay. Similarly, Gap adjusted two metrics for tariff impacts not anticipated in its budget, leading to CEO Richard Dickson's total pay of $17.2 million.

Seven companies that adjusted for tariffs disclosed the dollar impacts, showing increases in bonus payouts ranging from 6% to 43%, with a median of 13%. For instance, Yeti Holdings added $38 million to its adjusted operating income, boosting annual bonus payouts by 42.6% and enabling CEO Matthew Reintjes to receive $7.7 million total, including a $1.1 million bonus.

Becton Dickinson raised a performance factor by 10 percentage points due to tariffs, contributing to Chairman and CEO Thomas Polen's $17.1 million total pay.

and Rationale Westinghouse Air Brake

Technologies adjusted metrics, increasing bonus payouts from 178.1% to 192.8% of target, with CEO Rafael Santana receiving $26.2 million total. ICU Medical disclosed upward adjustments of 50% to long-term incentives and 27.2% to annual bonuses. In contrast, 11 companies, including Amazon, CVS, Johnson & Johnson, and Mattel, did not mention tariffs in their proxy statements.

Three companies—Ford, PepsiCo, and Pfizer—addressed tariff impacts but did not adjust executive pay plans. For example, Ford reported absorbing a $2 billion tariff hit to adjusted EBIT without excluding it from incentive calculations. Compensation Advisory Partners co-author Shaun Bisman stated that tariffs affected income statements and incentive plan designs for many U.S. companies with overseas operations.

She added that the timing of the tariffs complicated responses, as many companies had already set plans with vendors and customers. Boards justified adjustments by stating that tariffs were externally imposed and unrelated to operational execution, aiming to avoid penalizing executives for factors outside their control.