Transforming the compensation committee

Unprecedented scrutiny elevates role beyond mere oversight to future-oriented
By Annette Cyr
|Canadian HR Reporter|Last Updated: 05/06/2012

Compensation committees are facing a level of scrutiny they have never seen before. Investors, analysts, government, the media and rating agencies are all putting the committee’s every move under a microscope.

With the adoption of executive compensation disclosure rules, and more active shareholder groups demanding a say on pay, compensation committees need to work harder to meet the requirements of all these stakeholders.

In response, many boards are seeking to transform and elevate the role and performance of the compensation committee, moving it from a mere oversight function to a more future-oriented role that anticipates the long-term needs of an organization and its shareholders.