September 10, 2020
Director Compensation: Board Pay Flat, Leadership Pay Up
– Liz Dunshee
Compensation Advisory Partners recently completed its annual analysis of non-employee director compensation among the 100 largest companies. This is the 10th year CAP has conducted this analysis. Here are some highlights:
• Median total comp is now $310K, up from $305K last year. This is the lowest year-over-year increase during the 10 years that CAP has been conducting this study
o 10-year look: Median compensation has increased 32%, or 2.8% per year on an annualized basis, over the past 10 years (it was $235K in 2009)
• Median additional compensation for Lead Director is now $45K, up significantly from $35K last year
o 10-year look: Lead Director pay increased 80%, or 6% per year on an annualized basis, over the past 10 years (it was $25K in 2009)
• 11 percent of companies announced pandemic-related temporary compensation reductions for directors, with most decreases only impacting cash compensation.