Effective executive compensation promotes company growth and long-term performance, creates value for shareholders, and rewards executives appropriately. Tapestry’s Compensation Committee Leadership Network (CCLN) fosters practical insights and solutions to some of the most vexing challenges boards face related to pay and performance.
The CCLN brings together compensation committee chairs from more than 40 of the largest and most admired companies in North America. This thoughtful group meets privately on a continuing basis, fostering personal relationships, mutual trust and candor. The network is supported by Meridian Compensation Partners.
CCLN members are leading the way in developing pragmatic policies and leading-edge thinking on topics ranging from management development and executive compensation to succession planning.
Recent network topics:
Compensation committee leaders do much more than set executive pay levels. Compensation Committee Leadership Network members discussed some of the broader leadership responsibilities that forward-thinking compensation committees will face in coming years, including how to identify, develop, and retain a new generation of executive leaders who seek to maximize flexibility and balance, not solely their paychecks.
Among the most important and challenging responsibilities of the compensation committee are developing long-term incentive plans for senior executives and defining appropriate peer groups to inform pay decisions. Members of the Compensation Committee Leadership Network discussed how they are responding to these challenges with David Chun, CEO of Equilar, and Charles Elson, Edgar S. Woolard, Jr., chair of the John L. Weinberg Center for Corporate Governance at the University of Delaware at the network's 18th meeting.
Compensation committee leaders met to address a number of topics, including their role in overseeing management development and succession planning and trends affecting compensation discussion and analysis disclosures. Members were joined by Michael Segal, partner at Wachtell, Lipton, Rosen & Katz, to discuss issues directors should consider when reviewing their committee's charter.
Gary Retelny, president of Institutional Shareholder Services, separately met with Tapestry's Compensation Committee Leadership Network and Lead Director Network in the summer of 2012. The purpose of these meetings was to enable meaningful, candid dialogue on issues related to proxy advice. This ViewPoints summarizes the questions posed to Mr. Retelny and his answers.
At the network’s 16th meeting, compensation committee leaders discussed challenges that will affect executive compensation in the next few years, CEO goal setting, Institutional Shareholder Services’ 2012 proxy guidelines, and programs that grant the CEO discretion to issue stock-based awards to company employees. Members were also joined by guest Jonathan Feigelson, TIAA-CREF's general counsel and head of governance, for a discussion on the investor’s perspective on corporate governance.
Compensation Committee Leadership Network
Compensation Committee Chair, Lowe's Companies