With the increased scrutiny on compensation, committees have the challenging task of reviewing how the company has structured plans in the past compared to how they've been structuring them recently. They're also looking at how compensation should take shape. For the near future, compensation will continue to remain on board agendas, and scrutiny over it may intensify. Committees will continue to try to straddle the fence between offering attractive compensation packages to attract the best talent and holding the line on reasonable compensation by shareholder standards. This is the best time to review past practices and make adjustments that meet modern governance standards.
Top 10 Compensation Committee Issues
Here's a list of the top 10 compensation committee issues that boards need to be prepared for:-
Expansion of the role of the compensation committee.
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Getting better acquainted with non-financial metrics.
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Reviewing and revising shareholder return plans.
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New issues prompting changes in director pay.
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Anticipating unexpected impact on compensation plans.
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Considering the impact of AI and big data.
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Taking a comprehensive look at the compensation committee's charter.
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Recognizing the increased competition for talent.
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Preparing for a downturn in the market.
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Re-evaluating clawback policies.
Technology Helps to Address Top Compensation Issues
Compensation committees will need to rely more intensively on digital tools such as those provided by Diligent Corporation to adequately address the challenges and demands of compensation committees. Nom Gov is the modern approach to effective board recruitment because it empowers boards with analytics that support highly effective and diverse boards. Governance Intel is another digital solution that helps compensation committees get and stay ahead of the times by eliminating the barriers to open web news, subscription news and proprietary data. This program combines and aggregates subscription sources and internal data with over 70,000 authoritative open-web business news sources using one powerful research and discovery tool. At the same time, this digital tool can help your board better research and prepare when reputational, governance and shareholder activism risks do arise. These tools and other digital software solutions by Diligent Corporation represent the modern governance approach to dealing with the many challenges that modern boards face every day.Media Highlights
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