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Compensation for outside corporate directors is stabilizing

Joe Mont | August 18, 2017

A new Willis Towers Watson analysis finds that total compensation for outside corporate directors rose a modest 2 percent in 2016, upward to just over $260,000.  

The increase was fueled primarily by increases in both cash and stock compensation, the global advisory firm says in its annual analysis of director compensation at Fortune 500 companies. The study also found of all pay elements in a director’s total package, the annual cash retainer for board service experienced the largest increase, jumping 6 percent in 2016.  

Total direct compensation includes cash pay, and annual or recurring stock awards. According to the analysis, the median value of cash compensation increased 4 percent in 2016, to $105,000 while the median value of annual stock compensation rose 2 percent to $150,000. The average mix of pay remained relatively constant at 57 percent in equity and 43 percent in cash.

“Compensation for outside...

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