Key Issues for Executive Compensation Committees

By now most credit unions have completed their annual compensation cycles, so it is a good time to do a little spring cleaning to prepare for the coming year. With the continued focus on executive compensation and the evolving regulatory environment, the role of compensation committees is emerging as a key governance tool. The call for increased transparency has also led to increased responsibilities. Given this, it is more important than ever for executive compensation to work effectively. The following article highlights three keys – role definition, strategic planning and process – for maintaining an effective executive compensation committee.