Wachtell Lipton's updated edition of its always-instructive “Compensation Committee Guide" provides an overview of the key duties, laws, rules, regulations, and standards applicable to listed company compensation committees and compensation-related disclosures; compensation methods and types and associated legal considerations; shareholder and shareholder-related proposals & developments (including ESG metrics); suggested practices that compensation committees should consider - including those relating to committee composition, meetings, minute-taking, and approvals; director compensation; and much more! The firm notes that the guide is also relevant to private companies - particularly those that may at some point consider accessing the public capital markets.
A model compensation committee charter, which also suggests provisions for committees with broad management development and culture responsibilities, is included as an exhibit for reference and/or tailoring to company-specific facts and circumstances.
Access additional resources on our Compensation Committees page.
This post first appeared in the weekly Society Alert!