finance
Eight Companies Adjusted Executive Pay to Exclude Tariff Impacts, Analysis Shows
An analysis by Compensation Advisory Partners found that among 22 large public companies exposed to tariffs, eight made adjustments to shield executive compensation from tariff costs. The adjustments were based on proxy statements filed before April 17, 2026. Companies like RTX, Gap, and Ross Stores did not disclose the exact financial impact of these changes on executive payouts.
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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.
