It is the mandate of the compensation committee to have oversight of the company or organization’s compensation policies. Best practices dictate that such policies align compensation with an overall business strategy. It is also important that these policies tie compensation to long-term strategic performance and enhancement of stockholder value. A performance-oriented environment should also reward achievement of internal goals. In determining the compensation of the CEO or other executives, the committee should look to performance objectives of other similarly situated companies in its own industry. Lastly, the committee should align the financial interests of its executives to those of the company’s stockholders. An annual performance review of the CEO determines if performance is in line with achievement of overall goals and objectives.
As with all the CBE questionnaires, evaluations, and training tools, CBE can simply convert your organization's existing materials to a more flexible and efficient governance platform or work with your governance professionals to design a new questionnaire closely tailored to the unique aspects of your business.