Which standing board committee is most suitable for considering the implications of aggressive growth targets on risk?

The compensation committee is particularly well-suited for considering the implications of aggressive growth targets on risk because this committee is primarily responsible for overseeing executive compensation and incentive structures. These compensation structures are often directly linked to the achievement of growth targets.

When a company sets aggressive growth objectives, the compensation committee must evaluate how performance incentives could encourage executives to take on excessive risks in order to meet those goals. If the targets are too ambitious, there may be a temptation to engage in risky behavior that could jeopardize the company's long-term stability.

By analyzing how compensation plans align with growth strategies, the compensation committee plays a crucial role in ensuring that incentives promote not only the pursuit of growth but also the management of associated risks. This oversight is essential for maintaining a balance between performance and risk management, making the compensation committee the ideal body to reflect on these implications.

The other committees, while important in their respective roles, do not focus primarily on the intersection of growth targets and risk management. This makes the compensation committee unique in its capacity to address the specific considerations linked to aggressive growth strategies.