Scrutiny on exec pay calls for HR to step up

HR’s role includes assessing culture, business needs and individual exec concerns
By Larry Moate and David Gore
|Canadian HR Reporter|Last Updated: 07/11/2007

Executive compensation is rapidly changing due to the increasing media spotlight and shareholders’ heightened scrutiny. Accordingly, the roles of stakeholders in the executive compensation process are evolving. To make an effective contribution to a successful executive compensation program, HR professionals have to understand how the executive compensation environment is changing and what lies ahead.

Executive compensation stakeholders

Before describing HR’s role in executive compensation, it’s important to identify the stakeholders in the executive compensation process. They include, along with HR, the board, the chief executive officer and the compensation consultant.