The Advisors' Blog

This memo from Compensation Advisory Partners looks at non-employee director compensation among the largest public companies. Here are the key takeaways for this year:

– Median Total Board Compensation remained flat versus prior year, and 75th percentile Total Board Compensation has remained flat for the past two years

– During the last year, there were the fewest increases to board cash and/or equity retainers of any year during the last decade, in reaction to the COVID-19 pandemic and related implications

– Shareholder-approved director pay limits that apply to both cash and equity-based compensation (i.e., that apply to total pay) became majority practice in 2020

The memo says that companies are now evaluating director pay levels in light of the pause on increases during 2020. Companies are still aware of COVID-related optics, but CAP predicts that boards will likely return to the normal cadence of director pay reviews & increases in 2022.

– Liz Dunshee