Compensation Committees
New Challenges, New Solutions
Executive compensation has become a flashpoint issue for board members, institutional investors, regulators, and the media. Compensation committees are challenged to design compensation programs that not only tie business or corporate strategies to company performance, but also motivate top executives and valued employees. At the same time, committees must address investor expectations for what is appropriate against a backdrop of heightened regulatory activity and public awareness.
What You Can Expect
You and your peers from a variety of industries will move beyond examining what creates problems in compensation arrangements to structuring more effective plans that drive long-term corporate performance, company profitability, employee satisfaction, and exceptional success. The program helps you rethink your approach to measuring and rewarding outstanding performance.
Your Course of Study
The intensive curriculum helps you focus on the formulation of plans that link executive rewards to company goals, while addressing the increased public attention paid to compensation issues. You also will learn how to design and implement more effective processes to guide committee activities.
Who Is Right for the Program
This leadership development program is primarily intended for directors of company boards who serve as chairs or other members of compensation committees, and senior corporate executives Bank directors, chief executives, directors of human resources, investors, legal professionals who help structure employment contracts, and senior regulatory officials charged with implementing legislation are especially encouraged to apply.
What You Can Expect
Improving Your Organization's Performance
Today's stricter regulations and heightened investor vigilance have added to the complexities of executive compensation. As a result, compensation committees must balance the often-competing tasks of attracting and retaining key talent, adhering to new government rules, and navigating public sentiment.
Designed for board members and senior executives who participate in compensation planning, this program examines the characteristics of a well-functioning compensation committee and the close relationship among compensation plans, employee motivation, and long-term value creation. As a participant, you will learn to adapt your strategy's structure and process to better reflect market demands.
Taking Your Skills to the Next Level
Through analysis of real-world situations and in-depth self-evaluation, you will learn to:
- Investigate current regulatory issues such as "say on pay"
- Explore alternative compensation plans
- Design a plan that better fits your business strategy
- Apply relevant methodologies and metrics to CEO performance evaluation
- Ensure that the compensation structure properly reflects your corporate culture
- Identify the risks of cookie-cutter solutions and external ratings systems
- Gain investor buy-in on compensation plans before they become public
Your Course of Study
The intensive curriculum focuses on the design of compensation plans and on the process that compensation committees can—and should—use to develop practices that link the rewards for executive performance to company goals. Crucial questions addressed include:
- What factors motivate senior executives—and what role does compensation play in this motivation?
- What characteristics define compensation plans that are both motivational to executives and acceptable to shareholders?
- What role should the compensation committee play in determining CEO compensation, designing compensation plans for other senior managers, and approving performance targets and levels of compensation?
- What does an effective process for committee activities look like—and how should compensation consultants, the CEO or his or her representative, and the senior human resources officer be involved in the process? Also, how should the committee relate to each of these players?
- How should compensation plans be related to performance evaluation practices for the CEO and other top executives?
- How should the compensation committee address new SEC requirements of compensation disclosure?
"Through its solid content and actual case studies, this program offered valuable insights. It further reinforced my business convictions and increased my confidence in choosing the correct methodologies to deploy. This is further affirmed by the fact that I have applied to attend a related program on audit-related material in November 2009."
Paul Schlosberg [Board Member], Zix Corporation, U.S.
Who Is Right for the Program
Compensation Committees: New Challenges, New Solutions is primarily intended for directors of public company boards who serve as chairs or other members of compensation committees, and senior corporate executives. Bank directors, chief executive officers, directors of human resources, investors, legal professionals who help structure employment contracts, and regulatory officials charged with implementing legislation also are welcome participants.
To maximize the program's impact through knowledge sharing and relationship building, attendance by several representatives from a given organization is encouraged.
Meet the Program Faculty
Harvard Business School Executive Education programs are developed and taught by a core faculty of HBS professors who are skilled educators, groundbreaking researchers, and award-winning authors. Faculty leverage their business expertise and field-based research to create new knowledge and enduring concepts that shape the practice of management. The result is a teaching team that exposes participants to multiple perspectives, challenging their thinking on many levels. For more detailed biographies, click on each faculty name.
Jay W. Lorsch, Louis E. Kirstein Professor of Human Relations. Member of the Organizational Behavior Unit; faculty chair of the "Corporate Governance Programs," "Leading Professional Service Firms," and "Making Corporate Boards More Effective."
V.G. Narayanan, Thomas D. Casserly, Jr. Professor of Business Administration. Head of the Accounting and Management Unit; and faculty chair of "Compensation Committees: New Challenges, New Solutions."
Krishna G. Palepu, Ross Graham Walker Professor of Business Administration. Senior Associate Dean for International Development; member of the Accounting and Management Unit and the General Management Unit; faculty chair of "Global CEO Program for China"; and faculty cochair of "Building Businesses in Emerging Markets."
Suraj Srinivasan, Associate Professor of Business Administration. Member of the Accounting and Management Unit.
Admissions
Because a diverse participant mix is an important part of every HBS Executive Education program, we look for candidates who reflect a broad range of industries, functions, countries, and backgrounds to enrich the learning experience.
Fees, Payments, and Cancellations
The program fee covers tuition, books, case materials, accommodations, and most meals.
No payment is necessary until you have been accepted into an HBS Executive Education program. After admission notification, we will send you an invoice via email; payment is due within 30 days of the invoice date. If admission is within 30 days prior to the start of the program, payment is due upon receipt of the invoice. Payment is required prior to the program start date. We accept payment by company check, bank wire transfer, or credit card (American Express, MasterCard, Visa). Details are included on the program invoice.
If you need to cancel or defer participation, you must submit your request in writing more than 30 days before the start of the program to receive a full refund. Due to program demand and the volume of preprogram preparation, cancellations or deferrals received 14 to 30 days prior to the start of the program are subject to a fee of one-half of the program fee. Requests received within 14 days are subject to full payment.
Requirements
Although there are no formal educational requirements, admission is a selective process based on professional achievement and organizational responsibility. We look for professionals who have demonstrated business talent and leadership potential.
Language Proficiency
We deliberately design our programs to encourage individual growth and to foster productive interaction among participants. For that reason, proficiency in written and spoken English is essential. If English is your second language, or if you have less than one year's experience working in an English-speaking environment, HBS requires a brief statement documenting proficiency in English-language skills, both conversational and written. This may include a list of the English-language certification programs that you have completed; the degrees you have earned at English-speaking colleges and universities; or the results of the Test of English as a Foreign Language (TOEFL) exam. The Admissions Committee also may request a telephone interview.
Application Process
HBS must receive your application and all required documents in order to prepare the application for review by the Admissions Committee.
To apply, you may use our online form or download an application. You also may request a brochure by mail.
If you submit your application online, we will promptly acknowledge receipt of your submission via email. In the unlikely event that an email acknowledgment is not received, please contact the Admissions Committee by email: exed_admissions@hbs.edu, phone: +1-617-495-6226, or fax: +1-617-496-1731.
If you choose to submit a printed application, be sure to type or print legibly and sign your application. Send the application to the address or fax number listed on the form. Mailed or faxed applications are processed and acknowledged promptly upon receipt via email.
Complete Your Application
Please answer all questions thoroughly—the Admissions Committee will only consider completed applications. After reviewing your application and making the necessary edits or corrections, print or copy the application for your records.
Meet the Deadlines
We request applications at least four weeks in advance of the program start date. Early application does not guarantee admission. Programs often fill to capacity, so early application is recommended.
Notification of Acceptance
We acknowledge receipt of all applications and maintain all application information in strict confidentiality.
To optimize the learning experience and maximize the exchange of ideas, the Admissions Committee selects a class that balances each participant's experience, the scope of his or her current responsibilities, and the type of organization.
The Admissions Committee begins reviewing applications four months before the start date, and qualified candidates are admitted on a rolling, space-available basis. Once the review process has begun, applicants are notified within three weeks via email regarding Admissions Committee decisions. If your application is received within three weeks of the program's start date, the Admissions Committee will notify you of their decision as soon as possible.
Need help?
For further assistance, contact our client service specialists at: 1-800-427-5577 (outside the U.S., dial +1-617-495-6555).