The Corporate Director Podcast Inside Today's Boardrooms: Key trends for compensation committees in 2025
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Nov 6, 2024 
Jon Szabo, a Partner at Meridian Compensation Partners, shares invaluable insights into the evolving landscape of compensation committees as they approach 2025. He discusses emerging trends, the priority of clawback policies, and the complexities of setting incentive goals amid uncertainty. Jon emphasizes the need for guiding principles in compensation adjustments and the importance of reassessing committee charters. Additionally, he highlights the growing focus on below-C-suite pay equity and the challenges of managing a comprehensive agenda.
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Clawbacks Are Here To Stay
- Clawback policies remain a growing focus as supplemental discretionary recoupment policies increase in prevalence.
- Smaller companies lag blue chips, so committees may feel market pressure to adopt similar clawbacks.
Set Goals With Adjustment Principles
- When setting 2025 incentive goals, define clear threshold and maximum performance intervals amid economic uncertainty.
- Predefine eligible adjustment areas and guiding principles for evaluating proposed incentive adjustments.
Reevaluate Expanded Committee Charters
- Many committees added human capital duties to their charters but now must reassess whether those duties fit or belong to other board committees.
- Committees should evaluate effectiveness and alignment before keeping expanded charter responsibilities.