Compensation Committee
What is a Compensation Committee? Board-Level Pay Governance Explained
A compensation committee is a board subset responsible for overseeing compensation strategy, especially for senior executives. It sets executive pay, approves ESOP pool sizes, oversees pay equity, and reviews comp cycle budgets.
Compensation committees are mandatory for public companies and best practice for private companies post-Series B. Members are usually independent board members engaging external consultants for market data.