Companies May Pay 20% to 30% More For Outside Directors
Jan. 13, 2005
By John S. McClenahen The cost of outside directors -- otherwise known as independent directors -- could be going up. Of 65 companies recently surveyed by Christian & Timbers, a multinational executive search firm, 83% said compensation will increase, ...
ByJohn S. McClenahen The cost of outside directors -- otherwise known as independent directors -- could be going up. Of 65 companies recently surveyed by Christian & Timbers, a multinational executive search firm, 83% said compensation will increase, and half of them put the increase at between 20% and 30%. Kerry Moynihan, a managing partner and leader of Christian & Timbers' board services practice, says the expected increases in fees stem from recent corporate scandals and the legislative and regulatory responses to them. "As more and more companies look for new directors to comply with the new requirements, compensation will go up. There will probably be bidding wars for the most prestigious directors -- those who bring big names and impeccable public reputations," predicts Moynihan.
