Directors are Recognized

As recently reported in The New York Times; Director pay “Tops $300,000.00.” Compensation for Directors has been increasing with most S&P 500 companies paying between $230,000.00 and $295,000.00, with some companies as much as $1.7 million.

This increase in Director pay may be in recognition of the ever-increasing scrutiny of a Director’s performance, responsibility, and exposure to personal liability – witness the Wells Fargo debacle.

However, the rise in Directors compensation, either through cash or stock or additional payments, as a committee chair or lead Director is being challenged by shareholders, explains Dan Laddin, founding partner of Compensation Advisory Partners.

Clearly, Directors have a challenging role in this growing adversity of Corporate culture, including human capital and corporate performance.

The joy of being a corporate Director is being eroded by the increasing burden, responsibility, and risk that now is placed on the shoulders ofCorporate Directors –

Is it worth the aggravation and personal risk?




Ref:   The New York Times