The Corporate Directors Forum conducted a survey of director pay practices
at privately-held, for profit companies in the San Diego area. Although the
sample for the survey was small (fewer than 20 companies), the findings are informative:
- Over half (54%) of boards surveyed pay directors an annual cash retainer
for board service
- The median annual cash retainer
for board service is $15,000
- The range is $2,000 to $26,000
- Nearly one-third (31%) of boards surveyed pay directors a cash fee per
board meeting attended
- The median cash board meeting fee is $1,000
- The range is
$500 to $2,000
- One board grants directors an equity-based award (rather than a cash
fee) for attendance at board meetings
- Two boards pay directors a cash fee for attending board meetings via
telephone
- One board pays a flat fee per telephonic
board meeting
- Another board pays
directors an hourly rate for
attending telephonic board
meetings
- Very few boards surveyed (15%) pay audit and compensation committee members
a separate fee for attending committee meetings
- One
board pays a flat fee per committee meeting
- Another
board pays directors an hourly rate for attending telephonic
committee meetings
- Committee chairs are not paid an additional fee for their service, among
surveyed boards
- Nearly one half (46%) of boards surveyed provide an equity-based award
to directors upon their election to the board
- Nearly two out of five (38%) boards surveyed offer directors
an equity-based award each year
- It is most common for the equity-based awards to take the form of stock
options
Provided By:
Annalisa Barrett
The Corporate Library
|