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Our firm’s partners and consulting staff have participated in more than 250 board compensation committee meetings in the first half of 2025 In light of the emerging trends and challenges in executive compensation for 2025, here are our key recommendations for compensation committees ahead of the new year. Through these engagements and internal firm collaboration, we have identified several key issues gaining prominence in boardroom discussions.

Explore 2025 boardroom trends in executive pay, esg, dei, and governance Kpmg’s “ on the 2025 compensation committee agenda ” highlights five topics for compensation committee focus based on the firm’s interactions with directors and executives, including human capital management oversight and alignment of environmental and social pay metrics with the company’s strategy. Understand implications for compensation committees and shareholder relations.

A key priority is to maintain transparent and compelling shareholder communications—through proxy disclosures, shareholder letters, and active engagement—while upholding strong governance standards around executive compensation.

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