There was a time when new directors consciously avoided serving on the audit committee because of the work involved and the heightened focus from the outside. Skip ahead to today, and you’ll hear that many directors now feel the same way about the compensation committee. With the advent of mandates through Dodd-Frank, SEC actions, Say on Pay, and now the pay ratio, compensation committee members clearly have their hands full.

Phoebe Wood, independent board member of four boards (and compensation committee member on several), takes a look at how increased regulations and transparency have changed the culture of the compensation committee and encouraged shareholder engagement. Wood also shares her thoughts on the biggest challenges facing compensation committees in the future.