The Evolving Relationship Between Compensation Committees and Consultants

When using information and services from outside consultants, compensation committees should ensure that contractors are independent of management and will provide objective, neutral advice. At a minimum, the committee must control all aspects of the relationship, including retention, scope of work, oversight, and possibly dismissal. If a consultant provides services to management as well, role and scope of work should be clearly articulated and monitored by the compensation committee.

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