Working Paper
Pay at the Top: When HR Makes a Difference
Despite its importance, relatively little is known about HR's role in board decision making concerning executive and board compensation and executive succession. To learn more about HR's role, the authors surveyed managers and HR executives in Fortune 1000 firms. Completed surveys were obtained from 106 companies. The Center for Effective Organizations conducted this survey -- the fifth in a series that began in 1995. This paper focuses on the most recent data, collected in 2007.
The HR elements most strongly associated with board requests for HR help with compensation and succession relate directly to HR's role in strategy formulation, presence in board processes, and contributions to manager sophistication regarding talent and organization issues. Less associated with board help requests are more HR-function-specific elements such as efficiency with resources, use of information technology, technical and consultation skills, and compliance.
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