Eric Hosken, a partner at CAP, was quoted in Boardroom Insider discussing how comp committees should evaluate risks when creating executive pay plans. Eric mentions that the compensation committees may closely govern the NEOs, but those lower in the organization just get reported up to the board and is an area a company may face large potential risks. Hosken urges committees to continue to ask questions to the company comp team or consultant to better gauge “what-could- happen” scenarios especially in times of economic uncertainty.
Partner Eric Hosken was recently quoted in the January issue of Boardroom Insider’s monthly newsletter. In the section discussing compensation, Hosken explains that he expects that the frequency of committee meetings will continue to be up. A few years back, it was normal to meet on a quarterly basis, but now larger companies are meeting six to eight times a year. Hosken says to view this as an opportunity to do better work; committees are far more active in talent and succession planning and are continuing to expand the agenda.
Partner Eric Hosken along with other compensation experts elaborate on how Compensation Committees have had a growing number of responsibilities.
Partner Bertha Masuda provides commentary on CAP’s study of 600 U.S.-based, private and family owned firms’ Board of Directors pay.
