Farient Briefings: A Look Back at Comp Committees’ Greatest Challenges

December 12, 2023

 

Our Exclusive Analysis of ESG Leaders and Laggards Compensation Committees Caught in the Middle

A Look Back at Comp Committees’ Greatest Challenges

What a year it has been. Our world was beset by unthinkable humanitarian crises and wars likely to alter social, personal, and political proclivities for generations to come. It was a good year to refresh our thinking on all aspects of leadership beginning perhaps with Walter Bennis and Burt Nanus’s 1991 book. Leaders: The Strategies for Taking Charge introduced the concept of VUCA, an acronym for volatility, complexity, uncertainty, and ambiguity originally coined at the U.S. Army War College in 1987. (Ever since some military brass have challenged its misappropriation by civilians, but that’s a story for another time.) Nonetheless, VUCA does capture the importance of agility when so much of what constitutes day-to-day decision-making is beyond our control to manage. The boardroom is deluged with such a wide range of risks, it’s wise to manage that which can be controlled. For business to march on,  priorities at all levels of an organization must be in order. As executive pay and corporate governance advisors, what boards and their comp committees pay leadership is our exclusive focus.

In this—our last newsletter issue of 2023—we revisit some of this year’s top stories in governance as we saw them complete with charts from our Data Analytics Team—DAT for short.

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News From Our GECN Canadian Partner

The Human Resources Committee (HRC) toolkit created by Southlea Group for the Institute of Corporate Directors (ICD) is now available on the ICD website. This is the first of a two-part series that outlines 13 key questions that HRCs can consider to align their programs in the best interests of the organization. ICD members can access this resource by clicking the link below.

News From Our GECN Australian Partner

In its year-end December newsletter, Guerdon News reports on the following:

  • the increase in ASX 100 companies’ remuneration report no votes
  • S&P/ASX 200 A-REIT executive incentive vesting outcomes
  • ASX 100 gender CEO pay gaps
  • New Glass Lewis’ U.K. voting guidelines and implications for Australian voting
  • The U.K. capital markets’ push to free themselves of governance strictures

 


Editor’s Note

Happy Holidays!

We look forward to connecting with you in the new year.

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About Farient Advisors 

Farient Advisors LLC is an independent premier executive compensation, performance, and corporate governance consultancy. Farient provides a full array of services, linking business strategy to compensation through a tailored, analytically rigorous, and collaborative approach. Farient has locations in Los Angeles, New York, and Louisville and works with clients globally through its partnership in the Global Governance and Executive Compensation (GECN) Group. Farient is a certified diverse company and is recognized by the Women’s Business Enterprise National Council.

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