Category: Executive Compensation
Field of Study: Specialized Knowledge and Applications
Audience: Executives, Executive Compensation Committee Members, HR Managers, Compensation Managers, Compensation Analysts, HR Generalists
Level of Difficulty: Intermediate
Delivery Method: Self-Study
DLC Course 03 - New Economy Compensation
DLC Course 12 - IRS Reasonable Executive Compensation and 21 - Managerial and Executive Compensation
With the increasing concern over executive pay, the need for an independent compensation committee in organizations has become a necessity. This course examines this committee’s roles and responsibilities in designing, reviewing, and overseeing the organization’s executive compensation program, as well as its structure and practices. Committee member selection, training, and responsibilities (both legal and ethical) are discussed. Further, the course focuses on certain key review points: the strategy and goal of the executive compensation program, the pay levels (both present and over the projected future), the competitiveness of these amounts and plans, and the recommendations brought to them for change. The committee also has a review function to determine whether the current program is meeting its goals and making changes in accordance with this review. It should be noted that when all executive compensation elements are added together, the total time expenditure for the committee can be considerable.
- Define the role and structure of a compensation committee
- Explain the strategy and structure of an executive compensation program
- Review the methodologies used to analyze executive compensation, and understand the role of outside consultants in this process
- Understand the legal and ethical responsibilities of the compensation committee in carrying out its task
- Describe the annual pattern of review, oversight, and recommendation
*The Course Credit Map
displays credit types offered by location and corresponding lists of eligible courses.