Sample Readiness and Succession Charts

For specific positions, the two charts shown in this sample demonstrate the relative readiness for others to step into these roles. The first chart shows the bench strength for direct reports to one C-suite officer while the second shows planning for the entire C-suite. The purpose is to guide discussion on key talent, plan rotations or developmental moves, or develop other specific action steps.

The focus on the board’s compensation committee has never been sharper. The components of compensation plans and the link between compensation and company performance are under intense scrutiny from shareholders, employees, policymakers, the media, and other stakeholders. The Report of the NACD Blue Ribbon Commission on the Compensation Committee revisits NACD’s 2003 Report of the NACD Blue Ribbon Commission on Executive Compensation to highlight the new environment in which compensation committees—and, more broadly, boards—are now operating. It recommends that the compensation committee and board work together to establish an executive compensation philosophy that supports the company in creating long-term, sustainable value.

The report includes ten specific recommendations for compensation committees to consider when evaluating their compensation philosophies. It also provides practical tools, such as sample compensation committee charters, a compensation committee assessment, and guidance on executive employment contracts.