CCI staff share recent surveys, reports and analysis on risk, compliance, governance, infosec and leadership issues. Share details of your survey with us: editor@corporatecomplianceinsights.com.
Littler: AI policy adoption on the rise, but has yet to reach tipping point
As artificial intelligence continues to proliferate across all sectors of the economy, a new survey finds that adoption of policies governing employee use of generative AI is on the rise.
In a survey of more than 330 C-suite executives across the U.S., employment and labor law practice Littler found that fewer than half (44%) of executives said their organizations have policies around generative AI, which represents a huge increase from the firm’s 2023 survey, when just 10% of respondents said the same.
Regulation around corporate use of AI is expanding, which likely is playing a role in companies’ adoption of policies governing employees’ use of the technology, though the complexity of crafting such a policy may be a hurdle for many organizations, said Marko Mrkonich, a Littler shareholder and member of the firm’s AI and technology practice group.
“Companies have made encouraging progress on workplace generative AI policies, but it’s not surprising that more than half have yet to implement one,” Mrkonich said. “There are several practical challenges that come with creating an effective policy for such a ubiquitous and evolving technology, including securing alignment and internal buy-in — especially when views about generative AI’s risk level and opportunities can vary widely among stakeholders.”
A few other key findings:
- Only 3% of companies with policies prohibit the use of generative AI altogether.
- Most executives (67%) say their organizations are focusing on setting clear expectations for use and relying on employees to meet them.
- More than half are using access controls that limit AI tools to specific groups (55%) and relying on employee reporting of violations (52%).
ISN data: Only 1% of companies reporting Scope 3 emissions
About 18% of companies are reporting Scope 1 and 2 emissions data, according to an analysis of customer data by ISN, a supply chain software provider.
The company’s 2024 report on ESG, powered by surveys of more than 34,000 contractors and suppliers, covers a range of sectors, including construction, manufacturing, utilities and oil/gas extraction, and ISN reported that fewer than one in five companies are reporting both Scope 1 and Scope 2 greenhouse gas (GHG) emissions data and only 16% have strategies in place to reduce emissions.
A few other key findings from ISN’s report:
- 35% of companies have policies condemning forced labor, and just over half (53%) provide general training on labor rights.
- 40% have a human rights policy in place, and 34% train staff on human rights and modern slavery.
- About 70% have an anti-corruption policy and 50% provide training on anti-corruption.
Equilar: GC compensation up nearly 25% since 2019
Compensation for general counsel at major U.S. public companies is on the rise, climbing 25% over the past five years, according to an analysis by Equilar.
The information service firm’s report, which covers the 500 largest U.S. companies by revenue, shows that the median total compensation for companies’ general counsel was $3.3 million 2023, up from $2.6 million in 2019.
Each component of GC compensation climbed during the study period, with stock awards and performance incentives growing the fastest — 51% for stock awards and 34% for performance incentives.
Other key findings:
- GCs with more than 20 years of experience had lower median compensation than shorter-tenured GCs — $2.7 million for more experienced professionals and $3.7 million for those with between six and 10 years’ experience.
- The percentage of women in GC roles climbed by four percentage points, and women GCs earned slightly more than their male counterparts — $3.4 million vs. $3.3 million.
Spencer Stuart: First-time board appointments becoming more common
In response to the challenging business and financial environment, S&P 500 boards have continued to evolve their composition to welcome relevant expertise, fresh perspectives and diverse representation, according to a new report from Spencer Stuart, an executive search firm.
The firm’s report on new directors and board diversity showed that first-time director appointments rose this year to 34%, up from 27% five years ago, as boards are increasingly looking for fresh perspectives.
A few other findings:
- Half of all S&P directors are women and/or come from underrepresented groups, a trend that’s continuing despite the percentage of diverse new directors falling to 58%, down from 72% in 2022.
- Financial expertise continues to be prized on boards, with CFOs and directors possessing a financial background comprising 59% of the incoming class.
- Youth is also being served, as those 50 and younger accounted for 14%, up from 11% in 2023.
