For my money, the subject Association of Corporate Directors (NACD), puts out some of the most useful reports of any organisation or firm. I find myself going back to their research on corporate director activities, compensation, and concerns numerous times each year for numerous articles I write for different publications.
Of course of study, I get these study for free. Companies, on the other hand, pay their corporate directors a fair amount of money ?" or so it seems, until one crunches the figure a little more profoundly.
The big news in the 2007-2008 NACD study on manager pay is that commission chairs are being paid significantly more than their co-worker on the board. Median value audit commission chair compensation, for illustration, was $25,000 above and beyond their board member compensation. This press release does not have what I believe most readers really want to see: what, precisely, is the median value board member compensation?
That info is enticing because several other fig are surprising: directors spend an norm of 207.4 hours (or five-plus 40-hour weeks) per year on board work. Even more interesting: the total cost of board compensation ranges from a median value of $448,808 at smaller companies to a median value of $2.02 1000000 at the largest 200 companies. As a percent of gross, though, these fees are paltry (0.19 percent at smaller companies; 0.01 percentage at the largest 200 companies) in light of the duty, and risks, of the place.
If the board takes its job earnestly, that sounds like a deal. Youre relation me it will cost me a miniscule sliver of our gross for rigorous oversight by a seasoned collection of concern and industry veterans who advise, grill, and drill our executive director on the way we balance risk and chance? Deal! On the other hand, that miniscule sliver sounds like its not sufficiency for what shareholders, employees, and other stakeholders expect from the board. Yikes, now I sound like a compensation consultant.