What is Compensation Committee in HRM?

Learn Compensation Committee definition in hrm with explanation to study “What is Compensation Committee”. Study compensation committee explanation with HRM terms to review HRM course for online MBA programs.

Compensation Committee Definition

  • Subgroup of the Board of Directors, composed of directors who are not officers of the firm.

    Human Resource Management by Robert L. Mathis, John H. Jackson



Compensation Committee Explanation

Well-planned official pay bundles are attached to a successful execution assessment process, compensate solid current execution, and give motivators to making long haul esteem. They should be organized to draw in, hold, and rouse the correct ability, and abstain from paying premiums for fair or terrible showing, or more regrettable, for crushing long haul esteem. They ought to be intended to adjust the interests of the board to those of investors and different partners in both the short and the long haul. While duty regarding CEO execution assessment (and that of other key senior officials) regularly rests with the full board, deciding proper remuneration arrangements for the organization's CEO and most senior administrators ordinarily is the assignment of the board's pay council.

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