Compensation committees face increasing challenges, demands

Structure for executive compensation may need overhaul
By Chris Howe
|Canadian HR Reporter|Last Updated: 05/03/2010

Compensation committees have good reason to seek expert advice. The personal reputations of directors are at stake due to a more complex and demanding environment. There is much more regulation, media scrutiny is increasingly intense and shareholders are better organized and more vocal than ever.

Business is brisk for executive compensation consultants who spend hours briefing committee members on trends, regulatory requirements and good governance guidelines related to executive and director compensation.

At issue is whether the current structure enables compensation committees to meet the increasing demands placed on them or whether it’s time to consider new criteria for membership.