NACD Compensation Committee Chair Advisory Council: The Compensation Committee’s Role in the Oversight of Talent Development

In brief: On June 3, 2014, the NACD Compensation Committee Chair Advisory Council met to discuss the expanding role of the compensation committee, including its oversight of talent development. The major takeaways from the discussion included the following:

• Board and committee discussions regarding talent should maintain an ongoing “rhythm”
• The leader of the HR function is a key support to the compensation committee
• Non-financial metrics should be integrated into leadership and succession planning conversations
• Long-term equity programs should differentiate high-potential future leaders

This resource can help your board:

• Determine the scope of the compensation committee’s role
• Design compensation plans that recruit and retain high-potential executives

Most relevant audiences: compensation committee members, talent development committee members, chief human resources officer