Current Issues for Compensation Committees

This session will highlight the latest trends on key issues facing compensation committees, whose role continues to expand into issues of human capital management and diversity, equity, and inclusion (DEI). How should expanded committees approach their larger role in talent issues in a constructive way that does not encroach on management and the human resources function? What are the current practices on tying pay to performance and explaining the company’s compensation philosophy in the CD&A, especially in light of the required disclosures under the pay-versus-performance rules and increased scrutiny in a volatile economy? How has the focus of incentive pay shifted from traditional performance metrics to emphasize other key strategic initiatives, such as meeting DEI or other environmental, social, and governance (ESG) objectives? How should companies respond to the Federal Trade Commission’s announced ban on non-compete agreements in light of anticipated legal challenges? What are best practices for the committee’s process, including retention of outside compensation consultants? How should compensation committees approach clawback policies with the implementation of the SEC’s enhanced clawback rules? The panelists will provide tools and insights so that compensation committees can successfully navigate the tensions between recruiting and retaining executives, complying with regulations, and responding to proxy advisory firm recommendations, investor demands and public sentiment.