CAP’s approach to Board-level client relationships supports our belief that being accountable to the Committee and working with management, as appropriate, leads to the best results
Board of Directors
The Board of Directors delegates authority to the Compensation Committee
The Compensation Committee monitors executive pay from a shareholder perspective, approves pay philosophy and programs, approves executive pay decisions, and ensures good governance practices are followed (i.e. proper due diligence, deliberations, record keeping, etc.).
The CEO and Board of Directors provide strategic context that drives pay philosophy and programs. Finance typically helps define performance and set targets that link to strategic and financial plans, while Human Resources translates enterprise and people strategy into compensation strategy and incentive design framework. Human Resources also makes recommendations to the CEO and/or Compensation Committee on pay philosophy, pay positioning, program design, and administration. The Company’s Risk Officer ensures all compensation plans have appropriate risk-mitigating controls.
The outside advisors provide insight, objective information and market perspective to the Compensation Committee and senior management on competitive positioning, pay and performance relationships, plan design features best practices. This outside perspective enables informed, responsible decisions. The outside advisors are consistently available to the Compensation Committee and internal resources for questions, interpretation, and research. Emphasis is placed on opinion and experience, not just data, while maintaining transparency and confidentiality.