Compensation Committee Charter

A compensation committee charter is a document that outlines the purpose, composition, and responsibilities of a corporation’s compensation committee. The compensation committee is a standing committee of the board of directors that is responsible for overseeing the corporation’s compensation policies and practices, as well as the compensation of senior management and the board itself. The charter typically specifies the qualifications and independence requirements for committee members, as well as the committee’s authority to engage external compensation consultants and advisors. It also sets forth the committee’s specific duties, such as developing and recommending executive compensation plans, reviewing and approving performance goals and metrics, and overseeing the corporation’s compliance with compensation-related laws and regulations. The compensation committee charter is an important tool for ensuring that the corporation’s compensation practices are fair, competitive, and aligned with its strategic objectives.