Among the many noteworthy takeaways from Pearl Meyer's report on its annual "Looking Ahead to Executive Pay Practices" survey of 304 companies (49% public/36% private/15% NFP) conducted in August and September 2023 are those relating to compensation committee oversight responsibilities.
Compensation committee oversight responsibilities are continuing to expand into areas traditionally maintained at the management level, as shown below, although percentages have generally declined from last year’s survey results (different respondent groups):
Furthermore, 20% of public companies have changed or considered changing the name of their compensation committee to reflect broader human capital oversight.
A plurality (~40%) of public and not-for-profit companies reported a moderate level of involvement by their compensation committee in broader human capital issues. Comparatively, a plurality of private companies (34%) reported a low level of committee involvement in these types of issues, while 31% reported no involvement. Among all company types, greater involvement was positively correlated with company size.
The full report, available for purchase, includes all responses in dozens of detailed data tables organized by respondent role and company ownership type, industry, and revenue size.