The Remuneration Committee meetings I attended in my early career often felt intimidating, nerve-wracking and pretty tense. Since then, my experience has broadened, and my perspectives deepened as I’ve taken on assorted positions around the table.
At times, I’ve worn different hats and been allied with opposing perspectives; between advisor and client and between management and non-executives. But it has been in an HR role where I’ve really appreciated how to balance priorities, to steer without over-committing to a single course, and to hold space for everyone’s views to percolate through. As a Head of Reward or Executive Compensation lead, I’m not sat on one side or the other, but I’m usually found on the fence post, balancing like a spinning plate.
These are some of the most important things I’ve learnt around those tables.
Never underestimate the power of narrative
It’s not easy to explain complicated and possibly contentious topics without using storytelling – and I recommend people use this to express themselves as much as possible. Give context and history without major leaps. Signpost what’s happened before and what might happen in the future. Great storytelling really places the nuanced issue on a timeline and identifies the consequences of a given basket of choices. This is done best by wrapping it carefully and thoughtfully in engaging narrative.
Before starting to write papers, I make considerable efforts to make sure I know the desired outcome. I don’t see this as “jumping the gun”, but more knowing and being comfortable with the preferred outcome to allow progress. This goes beyond whether the agenda item is ‘for approval’, ‘for noting’ or ‘for discussion’. It might instead mean that success is achieving a desired emotional state in some members or, reaching the point of the next discussion or making sure a conversation is brought up, even when the answer is immaterial.
I start with ‘why’ then add ‘what’ and finish with ‘how’, and usually swing back to ‘so what?’ I’m always conscious to distil the facts, clearly point out the action required.
Telling a story through the agenda and each supporting paper allows the Committee to truly have an informed and effective discussion.
Know your subject
Part of my function in the HR role supporting a Remuneration Committee is as an information source and guide. I bridge any knowledge gaps which creep up on attendees, not least because of the ever-changing regulation and compliance environment. It’s embarrassing when discussions stall or don’t even begin because the facts are not available.
I have usually printed off far more documents, plan rules, previous minutes and so on than I ever let on to the team; my back-pockets brim with back-up material. Knowing the types of questions Committee members are likely to ask, or impact assessments they’ll enquire about really is essential.
However, facts alone only get the Committee so far in my experience. It’s about balancing independent advice, management insight, and having an appreciation for whether a decision can even be implemented alongside the organisation values, and role-modelling behaviours you expect from your people. The most effective Committees I’ve supported are the ones where ‘silly’ questions are asked and facts are balanced with the right emotional assessment.
Plan, plan, plan and execute
My biggest tip for anyone embarking on this important journey is that you must first map out the process of paper writing. This is for the obvious reason of meeting your deadlines, but also so that you get the perfect balance of ingredients, flavours and seasoning. A topic for discussion needs to have had the right amount of time to diffuse through the relevant stakeholders. Not just reading time, but time for them to really digest and allow you to limit any surprises. The execution includes proof-reading and fact-checking, as well as allowing for all the peculiarities your individual Committee has for how they want to receive ‘the pack.’ Nobody breezes into a Remuneration Committee meeting. Nobody wants to ‘wing it’ (and most can’t!) and therefore it’s my role in HR to facilitate a smooth and streamlined journey from the agenda setting to the minute writing. It takes curiosity, proactivity and resilience to make this happen, and a firm grip on getting time for discussions and input planned way in advance. It is a mixture of project management and curating an art installation.
I enjoy my career in Executive Compensation because I delight in seeing human instincts interact with business strategy, attended by sound judgement, all playing out in an arena that I’ve found is like no other in a business environment. The players wear multiple hats, needing to balance competing priorities. Everyone is dealing with complex but poorly understood matters, not through ignorance or neglect, but because of unfamiliarity. The direction of discussions and impact of decisions set the path for individual and corporate successes of the future and in many cases can set the whole cultural tone for an organisation.
And what does that really mean? That the activities of this Committee really matter.
About Laura Smith
Laura is a successful Reward leader who makes solutions stick by expertly managing and building relationships with stakeholders; blending analytics, knowledge and meaningful communications to make Reward work smarter. She is currently leading on Executive Compensation as a Senior Executive Compensation Manager for Direct Line Group.
Her early working life involved working as an Executive Compensation consultant before moving in-house nearly a decade ago.
Find her on LinkedIn here.
