Post by Jason Dacaret

Why COO Compensation Must Evolve Market rebounds may settle nerves, but they don’t reduce complexity. Today’s COO is a strategic lynchpin—navigating risk, aligning teams, and turning disruption into direction. Compensation needs to catch up. Why This Can’t Wait: 🔹 The scope of Risk has exploded—COOs operate at the center of geopolitical, operational, and investor pressure. 🔹 Visibility is higher—Boards now expect real-time foresight and execution. 🔹 Retention risk is rising—Top operators are being aggressively recruited. What Needs to Change: 🔹 Resilience-Based Metrics Incentivize agility, system durability, and cross-functional alignment—not just cost cuts. Reward leaders who can maintain momentum in turbulent conditions, build systems that flex under pressure, and preserve enterprise focus. 🔹 Time-Based Equity Design Structure vesting over 3–5 years tied to strategic transformations, not just annual targets.  Large-scale change rarely delivers results in one fiscal year. 🔹 Mandate-Specific Goals Match KPIs to the mission—global scale, supply reorg, digital ops—whatever the actual challenge is, performance gates must reflect the uniqueness of the role. 🔹 Innovation Recognition Reward experimentation, systems redesign, and operational reinvention.  These are often early indicators of a company’s future adaptability. 🔹 Influence-Based Incentives Include board access, succession visibility, and M&A involvement. Talent follows impact. 🔹 Clear Phases of Success Define what great looks like at 6, 12, and 36 months—and tie comp accordingly. Compensation should reflect both near-term effectiveness and long-term transformation capability Final Thought: The COO role isn’t reactive. It’s the connective engine of scale and transformation. If your business needs to pivot with precision, make sure you’ve built the right incentives around the one who makes that possible. Next up: How to brief your board on the evolving mandate of today’s COO. #COO #ExecutiveCompensation #Leadership #Strategy #TalentRetention #Operations