Define what compensation is for: attract who you want, retain who you have, motivate the right behaviours, and pay what is fair. Without philosophy, every salary decision is ad hoc.
A documented compensation philosophy covering target market position, pay-mix design (base / variable / equity), and the principles that govern every comp decision. Stress-tested against your business strategy and signed off by the executive team.
A compensation philosophy that survives the next merit cycle — and the next one after.