The HPRA’s new guide: “The Expanded Role of the Compensation Committee” discusses how the compensation committee is evolving based on institutional investor scrutiny, regulatory pressures, and other developments, and shares common and leading practices to help manage the changes. Most commonly, the committee’s remit is expanding to include non-C-Suite topics such as talent management / succession / retention, DE&I, corporate culture and employee engagement, human capital metrics, pay equity, employee reskilling, and employee well-being. Additional changes include new regular committee meeting participants and guests, and more meetings of longer duration.
The guide, which is based on interviews with compensation committee chairs, CHROs, and compensation consultants (Semler Brossy, Pay Governance, Meridian, and FW Cook) also touches on utilization of outside consultants for talent, diversity, and culture advice; meeting/agenda efficiencies; and committee composition and training. Sample meeting calendars and a list of expanded compensation committee names based on companies interviewed are included in the Appendix.
Access additional resources on our Compensation Committees page.
This post first appeared in the weekly Society Alert!