Compensation and Organizational Development Committee

Abstract

As a general matter, compensation and organizational development committees are charged with reviewing and recommending the compensation philosophy and policies of the company, reviewing employment arrangements with the CEO and other senior executives, overseeing the company’s overall compensation structure and bonus policies and approving and monitoring organizational development efforts. This chapter discusses the basic legal duties and responsibilities assigned to compensation committees by securities regulators and how the emergence of CSR and sustainability has impacted each of the areas traditionally covered by this committee such as tying executive compensation to achievement of sustainability goals and allocating resources to sustainability management systems.