New certification tackles role of HR and compensation committees

Directors College program applies latest governance principles
By Sarah Dobson
|Canadian HR Reporter|Last Updated: 11/15/2007

Though many advances have been made in improving the decision-making and corporate governance practices of boards of directors, there is still a large need to better understand and convey the proper role of their HR and compensation committees.

That’s according to Chris Bart, principal and lead professor at the Directors College, a joint venture of the Conference Board of Canada and the DeGroote School of Business at Hamilton’s McMaster University.

Bart says the work of boards has been dispersed among committees, such as audit or governance committees, but there has been “a woeful lack of attention” paid to the governance requirements for HR and compensation committees (whose duties can include a review of company strategies for attracting, developing, retaining and motivating management and employees, a review of the succession of leadership talent or a review of the executive compensation policy).