The rise of AI is prompting companies to reconsider long-standing business assumptions. Compensation committees should be no exception, as traditional approaches to incentive design may no longer align with how value is created in an AI-enabled world.

Most incentive plans and pay structures assume a relatively stable view of work in which roles are defined, accountability is clear and value can be attributed to people. AI is typically presented as a technology upgrade centered on better tools and faster outputs. In practice, however, it is quietly eroding the foundations of traditional compensation design. READ MORE