Board Compensation Changes With The Times

Jan. 13, 2005
Perhaps a result of the corporate governance upheavals dominating recent business news, board member compensation is in flux, according to Sibson Consulting, a division of The Segal Co., New York. According to Donald Gallo, a Sibson senior vice ...

Perhaps a result of the corporate governance upheavals dominating recent business news, board member compensation is in flux, according to Sibson Consulting, a division of The Segal Co., New York. According to Donald Gallo, a Sibson senior vice president, "Differentiation in director compensation, previously driven by company size and industry, is increasingly affected by the specific roles that individual directors have to play. One size no longer fits all." A recent analysis by Sibson of data from 385 proxy statements filed in 2002 and compiled by Khojna Technologies found that:

  • Lead independent directors at most companies that have such directorships are paid 116% of what regular board members receive in total compensation, including stock.
  • Fully independent board chairs earn 136% of what regular board members get in total compensation including stock.
  • Board chairs who were previously CEOs of their companies earn 302% of what regular board members are paid in total compensation, including stock.
In addition, a recent survey of 69 companies by Sibson Consulting found that: 55% are changing audit committee compensation; 32% are changing compensation committee pay; 25% are increasing committee chair retainers; 13% are increasing committee retainers and 13% are increasing committee fees.

Popular Sponsored Recommendations

Global Supply Chain Readiness Report: The Pandemic and Beyond

Sept. 23, 2022
Jabil and IndustryWeek look into how manufacturers are responding to supply chain woes.

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

How Organizations Connect and Engage with Frontline Workers

June 14, 2023
Nearly 80% of the 2.7 billion workers across manufacturing, construction, healthcare, transportation, agriculture, hospitality, and education are frontline. Learn best practices...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!