The Advisors' Blog

This blog features wisdom from respected compensation consultants and lawyers

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.

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