The work of a compensation committee is much more than just deciding how much money executives make. Many investors see pay decisions as a reflection of the company’s strategy. They know it can have an impact on the company’s culture. And they use it as a window into the board’s oversight role.
How can compensation committees support long-term shareholder value? By reviewing the internal workings of the committee, and examining the committee members, the meeting agendas, materials and how the meetings are run. And, just as importantly, by looking at how the committee interacts with others. This includes interactions with compensation consultants, the full board, other committees and shareholders — as well as with management.
In our guide, we share best practices around:
- The structure of the compensation committee
- Key responsibilities of the compensation committee
- How often a compensation committee should meet
- Working with others
- And more
Learn more