In its just released report on Directors Compensation and Board Practices in 2006 which covers director compensation in 402 companies, The Conference Board reports that median total compensation for outside (non-employee) directors of U.S. boards is higher than last year in all major industry sectors covered by the study.
According to Charles Peck, compensation specialist at The Conference Board:
Demands on board members have increased markedly in recent years, and their compensation is increasing commensurately. In particular, committee service, especially for those serving on audit and compensation committees, has become much more demanding.
Among the study's key findings:
In manufacturing, median total compensation (which includes fees, retainers, committee pay, and all forms of stock compensation) for outside directors is now $109,000, up from $91,250 in 2005. The service sector is $106,250 this year, up from $81,875 last year. Financial services increased from $64,500 in 2005 to $83,000.
Median basic annual compensation (the mix of fees and retainers for board service plus committee pay) is up in all three industry sectors. Manufacturing increased from $59,150 to $65,000; financial services increased from $48,000 to $50,300; and services from $57,000 to $60,500.
Learn more about the study here.