COVID-19 has led to a market fallout arguably more sudden and unexpected than any other economic crisis we’ve experienced in our lifetimes. The second quarter of 2020 is expected to be one of the worst on record, with industries up and down the supply chain — from retailers to restaurants — facing an uncertain future.
For all investors, this is a scary moment, but perhaps even more so for employees of hard-hit companies whose earnings and financial situations are tied up in company stock. Until now, many employees have happily accepted stock-based compensation — partially because it’s often built into pay packages, but also because employees themselves are typically optimistic about the success of their organization and eager to share in the earning opportunity as the company grows and thrives. However, COVID-19 has thrown this confidence into question as the economic environment we’re operating in has been altered.
