The Advisors' Blog

With the compensation committee’s role expanding significantly and quickly in recent years, this NFP Compensation Consultants blog reminds us that pressure is also on corporate secretaries and HR teams to facilitate committee oversight of new focus areas, like HCM and DEI. That doesn’t mean to you need to reinvent the wheel, but a continued—and greater—focus on organization and communication is key.

The blog notes that committee calendars are the most effective tools to ensure that topics are addressed and sufficient time is dedicated to them. Evolving expectations of committees means these calendars will need to be refreshed more often. I’ve seen companies prepare two versions for different purposes: a granular version for management’s internal use and a color-coded, highly designed version to include in committee materials.

The post also highlights the importance of increased communication for committee members and HR. Often the corporate secretary has a key role in facilitating that communication. If your compensation committee agenda and materials are prepared by one department working in a silo, now is the time to improve your internal collaboration—among HR, legal and financial reporting.

For resources, including comprehensive guides and sample calendars, check out our “Compensation Committees” practice area on CompensationStandards.com.

– Meredith Ervine