compensation committee

A compensation committee is a group within an organization's board of directors responsible for determining executive pay and benefits. This committee evaluates the performance of top executives, analyzes compensation trends, and sets salary, bonuses, and other perks to attract and retain talent. Its goal is to ensure that compensation aligns with the company's performance and strategy, promoting accountability and fairness. The committee often works with external consultants to benchmark compensation packages against industry standards, helping to balance competitive pay with the organization's financial health and the interests of shareholders.