Evolving Definition and Role of Corporations in Stakeholder Management

Join BDO's Terry Adamson as he sits down with Robin Ferracone to discuss the expanding responsibilities that compensation committees are taking on. Robin is the founder and CEO of Farient Advisors and Chair of the Compensation Committee at Trupanion, Inc., (NASDQ: TRUP).

Key Takeaways

• The role of the compensation committee is continuing to expand requiring oversight needs to clearly define and incorporate broader responsibilities - including, for example, human capital philosophy and culture.

• With the move toward greater corporate social responsibility, it is possible to incorporate stakeholder measures into incentive plans – both short and long term.

• Diversity, equity and inclusion (DEI) are all separate but interrelated opportunities that need to be thoughtfully assigned within the board to a committee(s) that can obtain a baseline, understand the gaps, and consider solutions to close those gaps throughout the organization and be reflected in human capital and compensation practices moving forward.

• Looking forward to 2021, boards should expect continued evolution of the workplace that will require a renewed awareness of stakeholder concerns and discussions of their impact on incentive plans.