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Directors’ Pay Up 14%

January 2007

Directors’ Pay Up 14%
Median total pay for independent directors at the 500 largest U.S. companies rose 14% last year, according to a survey by compensation consulting firm Steven Hall & Partners. The new figures bring median compensation totals from $162,363 to $185,000.

Higher cash retainers for board service (up 11%) and committee chairmanship (up 25% to 80% depending on the committee) contributed to the increase. Total board pay for companies in the bottom half of the top 500 grew a surprising 19%. About a third (34%) of the top 1,000 companies have dropped board-meeting fees, which are generally $1,500 per meeting.

Source: Steven Hall & Partners, www.shallpartners.com .

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