The role and importance of audit, compensation and nomination committees in the board of Directors of companies

This research aims to know the importance and role of board committees, especially the compensation committee and the need to create this committee Also, it states the role of each committee, especially the compensation committee, and the necessity of creating this in the board of Iranian companies. the required information collected from articles by the literature method. The results show that board committees' formation has many benefits, including responsibility, professional knowledge, accountability, adjusting the manager power, reducing business activities' complexity, reducing coordination and communication problems, and making more efficient decisions. These cases increase the effectiveness and efficiency of the board and finally strengthen the corporate governance system. Moreover, the compensation committee can resolve shareholders' concerns about the amount of compensation paid to managers and their opportunistic behaviour by allocating compensation optimally and making the compensation process clear to managers. Therefore, it is necessary to pay more attention to the board committees, especially the compensation committee, due to the complexity and specialization of business activities.