Chair of the Compensation Committee: Evolution of the Role
Shareholders and regulators are continuing to demand more of corporate boards, calling for their active and direct involvement in corporate governance. In response, boards and their committees have been re-examining their mandates, membership, internal processes and alignment with best practices. With compensation remaining a top concern for investors, regulatory bodies and the public, compensation committees in particular are being affected, with a strong call for direct involvement and accountability on executive compensation decisions. One of the greatest changes taking place is in the evolution of the role of compensation committee chair, triggering a need to rethink and document the changes, as has generally been done for the committee itself by way of its written mandate from the board.