Compensation Committees: Framework for Executive Compensation Alignment

Course Number:26
Category:Executive Compensation
Field of Study:Specialized Knowledge
Audience:Executives, Compensation Committee Members, HR Managers, Compensation Managers, Compensation Analysts, HR Generalists, Business Valuation Professionals
Level of Difficulty:Intermediate
Delivery Method:QAS Self Study
Prerequisites: None
Advanced Preparation:DLC Courses 12 and 21
SHRM BASK:As defined by the SHRM Body of Applied Skills and Knowledge (BASK), this self-study course relates to competencies in Business Analysis, Business and Competitive Awareness, and Strategic Alignment with functional areas in Total Rewards, Structure of the HR Function, and U.S. Employment Law and Regulations.
OverviewThe top executives in an organization have the biggest impact on its performance and meeting stakeholder expectations. The compensation they receive is designed to align their efforts with those expectations, both short-term and long-term. In addition, compensation is used to attract and retain valued talent. It is the role of the Compensation Committee to determine the appropriate compensation that meets all these requirements. This course will look at who qualifies to be on the Compensation Committee, their responsibilities, the regulations they must comply with, the different compensation elements they have to work with, and the compensation and analysis report they produce for the Board of Directors, the SEC, and company stakeholders.
Learning Objectives:
  • Identify the qualifications for compensation committee membership and the criteria to use to avoid a conflict of interest or undue influence
  • Recognize how compensation committees execute governance, oversight and fiduciary responsibilities
  • Identify criteria for establishing an effective performance evaluation process
  • Recognize resources a compensation committee may need to support their work
  • Identify important Financial Accounting Standards Board (FASB), Internal Revenue Service (IRS), and Securities and Exchange Commission (SEC) rules and regulations that govern executive pay
  • Specify what the Dodd-Frank Act say-on-pay provision is
  • Specify what the Sarbanes-Oxley Act clawback requirements are
  • Define what a “golden parachute” payment is
  • Recognize the content of the Compensation Discussion and Analysis (CD&A) report that is filed with the SEC
  • Identify the elements of an effective executive total compensation program including the post- employment plan
Credit & Professional
Continuing
Education Information:
  • SHRM-CP/SHRM-SCP Credit Information:

    ERI Distance Learning Center is recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP® or SHRM-SCP® recertification activities. This program is valid for 2 PDCs for the SHRM-CP® or SHRM-SCP®. For more information about certification or recertification, please visit www.shrmcertification.org.

    SHRM Preferred Provider
  • aPHR/PHR/SPHR/GPHR Credit Information:

    ERI Distance Learning Center is a recognized provider of recertification credits. The HR Certification Institute® (HRCI®) has pre-approved this activity for 2 HR (General) credit hour(s) towards aPHR, PHR®, SPHR®, and GPHR® recertification.

    HRCI Approved Provider
    HR Certification Institute’s® (www.HRCI.org) official seal confirms that ERI Distance Learning Center meets the criteria for pre-approved recertification credit(s) for any of HRCI’s eight credentials, including SPHR® and PHR®.
  • CCP/CBP/GRP/WLCP Credit Information:

    This online course qualifies for recertification credit for the Certified Compensation Professional (CCP®), Certified Benefits Professional® (CBP), Global Remuneration Professional (GRP®), and Work-Life Certified Professional (WLCP®) designations granted by WorldatWork Society of Certified Professionals. For more information on recertification, visit the Society website at www.worldatworksociety.org.

  • CPE QAS Self Study Credit Information:

    National Registry QAS Self Study - Course approved for 2 credit(s) in these states:

    Alabama, Alaska, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virgin Islands, Virginia, Washington, West Virginia, Wyoming

    Course approved for 2 credit(s) in Vermont

Additional Information:
*The Course Credit List displays credits and credit types offered by location.
World at Work
CPE Sponsors - Registry
CPE Sponsors - QAS
CAC
CCC

ERI Economic Research Institute is recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CP® or SHRM-SCP®