AI-generated pay ranges lack credibility and often miss role-specific context

Compensation benchmarking depends a lot on corporate strategy and how integral the role is to the corporate growth philosophy

Best practice: Establish a clear, consistent pay philosophy to confidently address AI-based data in compensation discussions

The key to running an effective equity strategy is finding the right balance

Align equity plans with broader compensation strategy to attract and retain talent

Use inducement plans for new hires or acquisitions, and consider cash-based awards with an equity settlement option

Companies are shifting to flexible, retention-focused compensation with milestone vesting, role-based equity, and increased use of RSUs and retention grants

An emphasis on equity over cash, strategic goal setting, and the offensive and defensive use of equity for retention, hiring, and M&A opportunities

Use fractional shares, post-vesting holding and flexible vesting to maintain value, drive participation, and support long-term alignment

Enhances engagement, helps attract and motivate employees, aligns interests, and offers potential for wealth creation

Can be stakeholder-heavy, complex and costly to administer, may create financial exposure for employees, and often results in limited participant understanding

Promotes financial education and may help mitigate unionization efforts

NQDC plans have the greatest impact on employee acquisition, retention and satisfaction compared to defined benefit, equity compensation, and defined contribution plans

Best practices start by clarifying participation, deferral types, allocation, company contributions, investment options, distributions and funding status

Company contributions may include lost 401(k) matches, mandatory or discretionary bonuses, and vesting conditions

“When people have the freedom to choose, they are more engaged, more motivated and more productive” - Dan Pink, author of Drive

Benefits of equity choice plans include tailored rewards, flexibility, engagement and retention, and competitive differentiation

Time and communication with internal and external resources are vital in first-time implementation of equity choice plans

Advancing diversity should be framed as a collective benefit, rather than a zero-sum outcome where one group loses and another gains

Understanding the evolution of DEI, especially post-George Floyd and amid rising anti-ESG legislation, is key to navigating today’s climate

As the bridge between boards, shareholders and employees, CHROs face unique pressure in championing DEI and aligning stakeholders