Compensation Committee panel discussion with Amy Cappellanti-Wolf, Carol Surface and Kelly Malafis.
This panel was part of the Corporate Board Member's Compensation Committee Virtual Summit held on Sept. 16, 2020. Title ofย ...
Chief People Officer, Hp
Search every verified Carol Surface interview, podcast appearance, and on-the-record quote โ each transcript cross-checked by AI and human review to confirm speaker identity. Carol Surface, then senior vice president and chief human resources officer at Medtronic, participated in a Compensation Committee Virtual Summit panel on September 16, 2020. During the discussion, she stated that the role of the chief human resources officer has evolved from transactional discussions about executive compensation to a more systemic view of the organization, including succession, retention, diversity, and pay performance. Surface noted that during the pandemic, Medtronic prioritized income protection for employees and invested in their health and well-being, and that the company made difficult decisions around incentive compensation, resulting in zero short-term incentive payouts but adjusted payouts for broad-based employees. Surface also addressed the relationship between compensation committees and HR leaders, saying that a good CHRO brings knowledge of how incentive compensation drives behavior and a broad understanding of human capital issues. She emphasized that boards need a consistent set of metrics on talent, succession, culture, and inclusion, with granular data to identify challenges. Surface added that human capital metrics such as employee engagement, cultural transformation, retention of key performers, and diversity were reported quarterly to boards, reflecting increased exposure, expectation, and accountability.
“A good HR chief HR officer brings knowledge of how incentive compensation drives behavior and the broad understanding of human capital issues to the comp committee relationship.”
“The role of the CHRO has evolved from transactional and compartmentalized discussions about executive compensation to a more systemic view of the organization, including succession, retention, diversity, equity, and pay performance.”
“Boards rarely discuss strategy without considering what type of talent and culture are needed to achieve it, and what incentives are required to engage management appropriately.”
“During the pandemic, our priority was to provide income protection for employees, invest in their health and well-being, and support them and their families to withstand the challenges.”
“We had to make difficult decisions around incentive compensation due to the fiscal year timing and pandemic impact, resulting in zero short-term incentive payouts, but adjusted payouts were made for broad-based employees to ensure income protection.”
“Compensation committees are especially concerned about how the employee base is treated relative to the executive base; a large gap is both morally wrong and harmful from a disclosure perspective.”
“Boards need a consistent set of metrics on talent, succession, culture, and inclusion, with granular data to identify challenges rather than over-aggregated data that hides problems.”
“Building a relationship with the compensation committee chair based on transparency, good judgment, and independence is critical to avoid perceptions that the CHRO is merely advancing the CEO's agenda.”
“The relationship between the CHRO and the independent compensation committee consultant should be collaborative and transparent to ensure management's views are represented without compromising the consultant's independence.”
“Human capital metrics such as employee engagement, cultural transformation, retention of key performers, and diversity are now reported quarterly to boards, reflecting increased exposure, expectation, and accountability.”
This panel was part of the Corporate Board Member's Compensation Committee Virtual Summit held on Sept. 16, 2020. Title ofย ...
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