The Advisors' Blog

I blogged yesterday about modest increases to compensation for public company directors over the past decade. That hasn’t been the case for their private company counterparts – who saw an average 25% increase last year, according to this survey from Private Company Director and Compensation Advisory Partners. Here’s more detail:

As private company board governance continues to evolve, the complexity and time commitment associated with board service has increased. The additional workload, coupled with greater competition to recruit qualified candidates, has caused private companies to increase pay levels and provide pay structures, such as annual retainers and long-term incentives, that are similar to public companies.

The 2025 Private Company Board Compensation and Governance Survey includes a robust dataset of 633 respondents who certified their data in April 2025 and provides an up-to-date analysis of director pay practices in the current competitive environment. About half of the survey respondents represent family-owned or -controlled companies. Another 17% of respondents represent closely held companies, 18% represent private equity-owned companies and 10% represent companies owned by employee stock ownership plans (ESOPs). The survey respondents span diverse industries and a broad range of revenue sizes.

The survey found that annual cash retainers are very common and that 37% of companies provide long-term incentives (mostly in the form of equity). Board compensation for private company directors is still lower than public company pay. But compared to the public company director compensation trends that I shared yesterday, it correlates more closely with company size.

– Liz Dunshee