Board Compensation Is Steadily Rising In Single-Digit Increases, Report Finds

A comprehensive survey of director compensation highlights the role and the risk of using equity to compensate nonemployee directors.

The report breaks down “how compensation is awarded to directors, and that a significant portion, usually at least a majority of their compensation,” is received in some form of equity, Peter Gleason, managing director of the National Association of Corporate Directors, told Bloomberg BNA March 20.

“The key thing to remember,” Gleason said, is that “equity compensation then becomes at risk” for the entire period of board service. “By at risk, I mean that director[s] can’t typically sell their stock,” but ...