Survey Results: More on Compensation Committees and Compensation Consultants


1. Does your compensation committee: (Total responses: n=20)
(select only one)
n=6 (30.00%) a. have a policy that it will not employ any compensation consultants who perform services for management.
n=10 (50.00%) b. not have such a policy, but does not intend to employ any of the same compensation consultants as management.
n=4 (20.00%) c. employ some (or all) of the same compensation consultants used by management.

2. In practice, how does your compensation committee go about hiring an expert for making recommendations regarding CEO compensation? (Total responses: n=20)
(select only one)
n=11 (55.00%) a. Management offers up a consultant to the compensation committee that it finds acceptable, subject to committee approval.
n=8 (40.00%) b. Compensation committee left completely on its own to find and hire whatever consultant it wants.
n=1 (5.00%) c. Compensation committee has not hired an expert for setting CEO compensation.

3. Assume the company already is using consultant A for general compensation advisory purposes, will your compensation committee: (Total responses: n=20)
(select only one)
n=2 (10.00%) a. Use the same consultant to help set executive compensation.
n=14 (70.00%) b. Use a different consultant to help set executive compensation.
n=4 (20.00%) c. Too early to tell what the compensation committee will do going forward.

4. Regarding compensation committee charters, the committee has: (Total responses: n=20)
(select only one)
n=16 (80.00%) a. A charter that states that the compensation committee will be the sole entity in the company to hire compensation consultants specifically related to CEO compensation.
n=0 (0.00%) b. A charter that states that both the compensation committee and management have the authority to hire compensation consultants specifically related to CEO compensation.
n=4 (20.00%) c. A charter that does not address who hires compensation consultants.


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