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17 June 2020 / Report
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Copy LinkBoard members make executive compensation decisions using numerous quantitative inputs but ultimately use their own judgment—judgment formed by years of experience and an understanding of the pay requirements for business success. Executive compensation practitioners interviewed for this report uniformly cited the subjective nature of these decisions as a challenge when implementing artificial intelligence (AI). However, we find that AI is already actively used to support board compensation committee and executive management’s decision making.
Board members make executive compensation decisions using numerous quantitative inputs but ultimately use their own judgment—judgment formed by years of experience and an understanding of the pay requirements for business success. Executive compensation practitioners interviewed for this report uniformly cited the subjective nature of these decisions as a challenge when implementing artificial intelligence (AI). However, we find that AI is already actively used to support board compensation committee and executive management’s decision making.
Senior Fellow, Human Capital
The Conference Board
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