March 16, 2012
Study: Less Than Half Audit Executive Compensation Packages
– Broc Romanek, CompensationStandards.com
According to this study by the Institute of Internal Auditors a while back, only 45.3% of respondent organizations conduct even limited reviews of the appropriateness of executive compensation and benefits and about one-third of such reviews are spearheaded by internal auditing. Moreover, the survey indicates that when conducting such reviews, internal auditors are most likely to focus on program compliance rather than on overall program design.
Personally, I’m not surprised given the expertise it would take to conduct a real review of compensation programs – expertise that internal auditors would not be likely to possess. Although I guess that’s true for most areas that internal auditors are called upon to review – that is one tough job…