Monitor diversity and inclusion initiatives and outcomes within the organization.
Committees are receiving at least annual updates from management on diversity and inclusion statistics, programs to support diversity and inclusion, and development opportunities for diverse leadership candidates.
Plan for succession.
There is an opportunity for compensation committees to help probe where diverse candidates reside in the organization and the efforts being taken to enhance their readiness.
Oversee annual compensation actions.
As committees review annual pay change recommendations, it is important that they not only understand the individual actions, but also look for patterns. How do increases and actions for women and minority executives compare? Are there other biases that the recommendations represent?