Tim Dupuis, principal at Pearl Meyer, sees company boards as being locked in on doing the right thing when it comes to executive pay.

"When it's an uncertain social political climate, an uncertain geopolitical climate, an uncertain impact of AI ... there's so many things that make this version of [volatility, uncertainty, complexity and ambiguity] even more ambiguous," said Peter Thies, managing director at Pearl Meyer.

“You should see that reflected in pay levels as compensation committees and boards struggle to be able to attract, retain and reward experienced talent,” said Bill Reilly.

In this conversation with The Consulting Report, Traxler discusses why compensation is most effective when paired with leadership strategy, how Pearl Meyer’s “One Pearl Meyer” model supports clients, and how AI is changing the context for board and executive decision-making.

The article discusses findings from a new Pearl Meyer survey showing that directors and C-suite executives differ in their views on the board’s involvement in CEO succession planning.

"Often, we tell clients we're not assessing for AI capability; we assess for the ability ... to be learning-agile, to be flexible, to be able to drive organizational change — and that's what this is," Brad Jayne said.

A Pearl Meyer survey of 100+ executives and board members reveals a growing disconnect in how companies are managing AI.

“Years ago, compensation committees would have only focused on executive pay, not broader human capital topics," Reilly explained. "We now see an increased prevalence of oversight on succession planning, talent development and even culture.”

The executive compensation consultancy Pearl Meyer noted in a 2022 blog post that excise tax gross-up provisions are controversial among boards and have seen decreased use in change-in-control and severance plans since the 1990s.

"Most boards don't actually have a documented, well-laid-out CEO orientation or onboarding program," said Peter Thies, managing director with Pearl Meyer.

“That shift is not just cosmetic,” said Ryan Hourihan, a managing director at Pearl Meyer. “It reflects a deliberate effort to create flexibility in how directors are deployed across committees without compensation as a barrier.”

“We’re seeing that public walkback a little more overtly on the DEI side, but certainly it’s changing on the climate side, as well,” said Jannice Koors, senior managing director at executive compensation consulting firm Pearl Meyer.