Serving on the compensation committee has become a formidable challenge for most directors regardless of one’s background or career. Not only do compensation committees have to navigate a host of regulations and complex terminology, but over the last several years, shareholders have made a significant push towards transparency on how decisions are made. Say on pay now gives them a non-binding vote to approve or express their concern about proposed executive remuneration plans. Indeed, serving on the compensation committee has become a delicate balance of interests.
In this episode, Bob Romanchek, Partner with Meridian Compensation Partners, outlines 5 subject-matter issues all committee members should know if they are joining or serving on a public company’s compensation committee.