Based on its review of S&P 100 compensation committee charters, Willis Towers Watson observed meaningful upticks in express responsibilities for D&I, culture, and employee relations and engagement, compared to 2019, as shown here:
The firm's interviews with 170 non-employee directors and compensation committee chairs (46% US) also revealed these noteworthy insights:
- Purpose & Profitability - Most directors don't believe purpose and profitability are incongruous; they believe they ultimately represent shareholders and that considering other stakeholders is imperative to long-term, sustainable value creation for shareholders.
- ESG Priorities & Agenda - Most directors agree the board should have ESG oversight and that the compensation committee should be responsible for aligning management's interests with relevant ESG priorities via e.g., performance accountability, incentives, leadership/talent development.
- Human Capital Governance & Organizational Culture - Most directors acknowledge a critical role for the compensation committee/board in promoting management's HCM and shaping of organizational culture.
See our recent report: "Compensation Committee Hot Topics: Here's How" and additional information & resources on our Compensation Committees page. This post first appeared in the weekly Society Alert!