Talent Matrix for Identifying High-Potential Employees

In brief: This talent matrix originally appeared in NACD’s 2013 Report of the NACD Blue Ribbon Commission on Talent Development: A Boardroom Imperative.

This resource can help your board to

• Measure the performance and growth potential of talent at all levels of the organization

• Select a CEO successor and develop a CEO succession plan

Most relevant audiences: CHRO, CEO, management development committee members

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.