From an HR perspective, implementing AI is about unlocking human speed and agility in processes

People want to be heard; it's the responsibility of companies to provide the platform

During tough compensation years, the best approach is to schedule virtual meetings with each committee member, providing them with the best information for a productive dialogue

Don't be narrowly focused on your own area; HR collaborates with everyone

Companies' aversion to trying new approaches impedes innovation

You want people who are builders and willing to take career risks

The Innovator’s Dilemma: What if your biggest competitor arose because its founder, unable to implement their idea at your company, started a new company?

Equity compensation enables employees to invest in their company's long-term success

CHROs must determine how to make the board more comfortable in assessing whether the Human Capital agenda is furthering or hindering business strategy

The evolution of compensation: everything has changed, yet nothing has changed

The ability to attract and retain talent is a strategic business issue, primarily centered around compensation

As directors, we value your input greatly because, at the heart of it, it's all about building relationships

Engagement should not begin weeks before your annual meeting, but rather after the meeting, in late summer or fall, to plan ahead for the coming year

Relying solely on vote outcomes as a signal for engagement isn't ideal; it may cause you to miss proactive opportunities to address certain issues

Take the time to establish a structured program with specific agendas for each topic and ensure the right person is present for each discussion

Avoid making the conversation solely about asking "what you would like to know?"

The key is to clearly explain the factors that influenced pay decisions, using a scorecard to define the components involved

In regards to ESG, The Supreme Court case has prompted adjustments in terminology

ISS and GL oppose discretion and generally favor a more formulaic approach

If discretion is used and adjustments are made, they should be correlated with shareholder outcomes

Equity plans are the lifeblood of companies

Providing quarterly updates to the compensation committee on burn rates and forecasting models is crucial

When evaluating a new equity plan, ISS does not emphasize change in control (CIC); it assesses how all equity is treated in the event of a CIC

Engaging shareholders before filing a new plan or making significant plan changes is crucial

Pay transparency extends beyond mere compliance with legislative mandates; it offers an opportunity to enhance awareness, confidence and engagement among employees

Employees may request information on their individual pay level and the average pay levels by gender for categories of employees performing the same or equivalent work

Employee reactions are the leading factor holding back companies from increased levels of communication around pay programs

Many U.S. companies will have to comply with the EU Pay Transparency Directive

The expense of executing a clawback can often surpass the actual amount recovered

In companies experiencing declining stock prices, there's often a disconnect between PvP and realizable pay, especially concerning options

The compensation team should be able to communicate the clawback effectively to legal

The discrepancy between CEO pay and that of other NEOs is garnering increased scrutiny from Glass Lewis and ISS, exacerbated by the gap in pay for performance

NQDC plans are typically available to the top 10% of employees, allowing them to defer salary, bonuses, RSUs/PSUs and employer contributions

Integrating NQDC and equity plans can create added value for both participants and sponsors, particularly when these plans are effectively coordinated

A well-structured and consistent education program is crucial for boosting participation and engagement, ensuring that employees thoroughly grasp and value the benefits of these plans

A compensation model needs to be changed when managers struggle, there’s high turnover or after discerning whether the issue is related to compensation or broader factors

Companies should consider employee financial peace of mind

If compensation education is a problem, then invest in financial education for employees

The top-down approach to peer group construction starts with a broad set of companies and narrows down to those most comparable in business and size

Executives, responsible for more strategic execution, will generally receive a different mix of LTI vehicles than the broader population

“One-team” philosophy can help stake critical employees in the post-spin environment

Develop ownership mentality throughout a significant population (including employees who don’t receive annual equity awards)

Implement automatic exercise for options, allowing the company to recognize the option price as an accounting cost

Equity grants are given to fewer women and the value of their awards are lower in LTIPs

Equity choice plans offer employees flexibility in structuring their LTIP, typically involving a blend of options and restricted stock

ESPPs are the most common method companies use to distribute ownership across their organizations

The VP of TR and the CHRO must be in lockstep; when an issue arises at the director level, the CHRO should rely heavily on the VP of TR

Provide the comp committee an initial preview of any upcoming changes in the plan, including a comprehensive presentation of the idea, strategy and communication

The CHRO should speak with every comp committee director before and after each meeting

A well-informed board is crucial to avoiding major surprises in opinions during meetings and ensuring everyone feels unified in their direction