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Board Guidance: Achieving Pay/Corporate Culture Alignment

By Randi Morrison posted 10-26-2017 07:40 AM

  

Pearl Meyer's "Supporting Culture Through Compensation, Recognition, and Reward Systems" identifies and discusses corporate-wide contextual factors that boards and compensation committees need to tackle before being positioned to ensure alignment of the company's executive compensation program with a desirable corporate culture.

Among other things, the article makes clear that management compensation and other rewards and incentives realistically can't be addressed in isolation, but rather need to addressed in the broader context of the company's talent development, and reward, recognition and pay programs or practices. The article includes illustrative examples of corporate culture "red flags," as well as a user-friendly matrix housing key questions for boards to ask management - tagged with the associated impacts on the corporate culture. 

This post was first included in last week's Society Alert!

See also this Entreprenuer article: "Corporate Boards Should be Demanding Management Answer These 5 Questions About Company Culture"; "Many Directors Are Culture Clueless" (with 10 recommended culture oversight best practices) from Directors & Boards, the ACC's new white paper: "Leveraging Legal Leadership: The General Counsel as a Corporate Culture Influencer" our prior Company Information & Resources reports: "Board Oversight: Tackling the Corporate Culture," "Understanding the Corporate Cultureand Board Risk Oversight: Understanding the Corporate Culture"; and numerous additional resources on our Corporate Culture, Risk Management & Oversight and Compliance & Ethics topical pages.

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