Blogs

Farient’s “RIP Compensation Committees?” documents the trend among Russell 3000 public companies across size categories abandoning the traditional “Compensation Committee” moniker in favor of a committee name that conveys the committee’s assumption of broader human capital responsibilities.

From 2020 to 2023, companies across all size categories reduced their use of “Compensation Committee” in favor of other committee names, with “Human Capital” being the most common change or addition to the name of the committee, followed by “Development,” and then “Talent.”

By index, over that time frame, use of the traditional “Compensation Committee” terminology declined 8% among the S&P 100; 2% among the S&P 500; 11% among the MidCap 400; 8% among the SmallCap 600; and 5% among the bottom 1500 of the Russell 3000.

The post provides examples of companies that changed the names of their committees within the past few years and the associated expanded responsibilities set forth in their committee charters.

Access additional resources on our Compensation Committees and Human Capital/Workforce Management pages.

                 This post first appeared in the weekly Society Alert!