Farient Briefings May 2024: Comp Committees’ Remit Stretches Oversight Boundaries

May 15, 2024

Beyond Pay: Comp Committees’ Remit Stretches Oversight Boundaries

 

It’s no longer just about pay. In the ever-evolving corporate governance landscape, the remit of compensation committees is at a tipping point, says Farient Partner and COO RJ Bannister. In this interview, Bannister expands on the operational skills, practices, and expertise needed by today’s compensation committees to keep pace with their expanding oversight role.

silhouettes on blocks

Diversity, equity and inclusion (DEI) as a corporate mission has been in retreat due to political backlash. Now companies seem to be doing more re-phrasing than reconsideration. In this Washington Post article, Farient’s ESG Leader Brian Bueno cites as an example, Starbucks, where DEI metrics in executive pay have been replaced with “talent-” related goals.

 

Dropping a term but not the missionReuters Sustainable Finance

The “anti-woke” backlash against corporate ESG initiatives has caused a shift in terminology, but not overall direction. In this Reuters Sustainable Finance newsletter, Farient’s ESG Leader Brian Bueno discusses how the overall political climate has impacted language around sustainability but the use of ESG or stakeholder metrics in executive pay has persisted.

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Caps Off to Devon Furlong

 

Among the 2024 graduating class of Columbia’s MBA program is Farient Advisors’ Devon Furlong. Farient Founder and CEO Robin A. Ferracone applauded Furlong’s achievement and commended her for taking advantage of Farient’s educational program, which matches dollar for dollar the cost of an MBA: “This is truly a demonstration of one of our firm’s core values: continuous learning for professional and personal growth. Congratulations, Devon!”

Devon Furlong Graduation photo


Where We’ll Be

 

10th Annual Meeting of the Global Governance and Executive Compensation (GECN) Group

Farient joins our GECN Group partners from five continents in Toronto, Ontario. Thank you to our Canadian partner, SouthLea Group for hosting.

June 14-17

Toronto, Ontario, Canada

 


CFO Study Finds Leap in ESG Maturation

 

A new survey from BDO of 600 finance chiefs found that most focus on sustainability and other elements of environmental, social, and governance (ESG) programs as “key strategic activities.” BDO divided respondents’ companies into “ESG-mature” and “ESG-reactive.” ESG-reactive businesses primarily view ESG initiatives through a compliance lens or are just getting started on their programs. BDO’s findings are consistent with Farient’s research, conducted annually in conjunction with the Global Governance and Executive Compensation (GECN) Group.

The business case for adopting sustainability strategies is reflected in the growing number of companies in multiple geographies and industries that tie sustainability measures to executive compensation plans, according to Farient’s 2024 report, despite pushback by “anti-woke” forces particularly in the United States. The research covers nearly 2,000 companies in nine countries, including the S&P 1500 in the U.S.

Download the full 2024 Global Trends in Stakeholder Incentives: What’s Next? report below.

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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, Louisville, and London 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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