April 6, 2022
Director Equity Compensation – Should We Consider Inducements?
With CEO pay bouncing back in 2021, what’s director compensation looking like? We’ve previously blogged about director pay at S&P500 companies and how equity compensation seems to comprise the biggest bulk of total compensation.
Pearl Meyer recently held a webcast with NACD and surveyed the 148 director attendees. 67% of respondents don’t expect to reduce the board equity grant value because of declining stock prices. In addition, for new board members, 49% provide pro-rated equity grants based on the new director’s start date and the annual granting date. Pearl Meyer ends with an interesting idea – if executives get inducement equity grants in a competitive market, why not directors?
– Emily Sacks-Wilner
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