Many organizations are rethinking how their compensation teams are structured as work becomes more global, complex, and interconnected. Moving from decentralized local teams to a centralized centers of excellence can create greater consistency and strategic alignment, but it also requires thoughtful design to ensure local needs and realities are still addressed.

In this session, a compensation leader from McKinsey & Company will share the organization’s journey from an established network of local compensation teams to integration with new global centers of excellence. You will explore how the model evolved to balance centralized strategy with local execution, including how global principles, frameworks, and tools support consistency while still allowing for regional flexibility.

Through practical examples, the session will examine how this operating model supports key initiatives such as preparation for the EU Pay Transparency Directive, handling market volatility, and modernizing digital infrastructure. The discussion will conclude with lessons learned and practical considerations for organizations evaluating how to structure their own compensation functions.

Key Takeaways

• Understand how a centralized compensation center of excellence can support global consistency while enabling local autonomy
• Explore practical examples of how compensation operating models influence key programs and process
• Identify success factors to consider when evolving compensation team structure in a global organization