On the 2024 compensation committee agenda
Five issues for compensation committees to keep in mind as they consider and carry out their 2024 agendas.
As companies reassess their talent strategies in the face of significant uncertainty, polarization, geopolitical and economic turmoil, regulatory changes, advances in emerging technologies, and a renewed focus on unionization and worker strikes, compensation committees will need to continue to evolve and expand their oversight of human capital issues in addition to their traditional responsibilities.
To guide management in developing a compensation and workforce strategy that drives a strong corporate culture and motivates executives and employees to achieve the company’s short and long-term goals requires effective committee governance practices.
Drawing on insights from our interactions with directors and business leaders, we highlight five issues to keep in mind as compensation committees consider and carry out their 2024 agendas:
- Ensure the company’s compensation strategy is optimal given the current environment and is responsive to shareholder concerns.
- Reflect on the compensation committee’s scope, responsibilities, and membership in light of increasing expectations for board oversight of human capital management (HCM).
- Monitor regulatory developments and encourage thoughtful implementation of required changes.
- Consider whether environmental and social measures should be included in incentive plans.
- Maintain familiarity with the evolving expectations of shareholders.
Expectations have increased for compensation committees to oversee a broader range of human resources matters in addition to their traditional responsibilities for oversight of executive compensation and equity plans.
Annalisa Barrett
Senior Advisor, KPMG Board Leadership Center
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On the 2024 compensation committee agenda
Five issues for compensation committees to keep in mind as they carry out their 2024 agendas.
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KPMG's annual messages to directors focusing on the critical issues that should be high on board, audit committee, nominating and governance committee, compensation committee, and private company board agendas.
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