NACD Compensation Committee Chair Advisory Council and the Advisory Council on Risk Oversight: Incentives and Risk Taking

In brief: NACD recently convened Fortune 500 committee chairs in a joint meeting of the Compensation Committee Chair Advisory Council and the Advisory Council on Risk Oversight. Meeting participants discussed leading practices related to incentives and risk-taking.

This resource can help your board to

• Review whether your board has an appropriate balance of metrics.
• Calibrate goals and upside opportunities appropriately.
• Consider the quality of performance.
• Determine how robust the controls on data are that are used as inputs to the compensation plan.
• Collaborate on the committee level about developing and monitoring incentive plans.
• Actively exercise discretion.

Most relevant audiences: risk committee members, compensation committee members, and audit committee members