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Compensation Committee Charter

A compensation committee charter documents the duties and responsibilities assigned to the Compensation Committee; it provides direction for all the activities of this committee, allowing the Committee to work more efficiently while also assuring it meets all its fiduciary obligations.  The charter may include the overall purpose of the committee, along with guiding principles of conduct, and a more detailed listing of specific committee obligations. 

Specific elements addressed in the charter might include:

• Areas of oversight
• Explanation of processes
• Standards for determining and resolving conflicts of interest
• Expectations for interaction with the Board, executive management, external consultants and other external constituencies
• Timelines for decisions and reports to the board
• Evaluation of the committee’s performance of its duties

Drawing upon our expertise gained from working with hundreds of boards from all types of health care organizations, IHStrategies can assist with the creation of a Compensation Committee Charter, either as part of a larger project or as the sole focus of our engagement.  We will start by interviewing key stakeholders in the process to gather opinions, and then will draft, review, and revise the charter until it meets the Committee’s needs as a working document.