Willis Towers Watson’s report on its recent study of S&P 500 compensation committee names and charters updates its 2019 analysis, revealing continued acceleration of evolving board committee structures to accommodate human capital management-related expectations and demands.
Among the noteworthy findings:
- Nearly 50% of S&P 500 companies refer to the committee that is responsible for executive compensation oversight as something beyond just the compensation committee, up 10% from 2019.
The most common variants among the 242 S&P 500 companies with committee names other than “compensation committee” or “executive compensation committee” are shown here:
The 2019 study identified five common or emerging non-traditional areas of compensation committee responsibility based on a review of committee charters among the largest 100 S&P 500 companies. The firm’s 2022 review of compensation committee charters across the largest 100 showed an increase in prevalence of compensation committee responsibility across all five areas, as depicted here:
The report also documents other emerging areas of compensation committee responsibility, including broad-based recruitment, promotion, retention, and turnover, and human capital risk, among others.
Access additional resources on our Compensation Committees and Human Capital/Workforce Management pages.
This post first appeared in the weekly Society Alert!