Board members are giving themselves raises at many companies, recent studies show, but compensation experts don’t expect a backlash from shareholders—at least not yet.
Pay packages for board directors at mid-market companies rose by an average of 7 percent in 2010, according to an analysis of 600 mid-market companies by accounting firm BDO. The increase, which brings average director compensation at these companies to $110,155, reflects “the increased responsibilities, time commitment, and regulatory issues—such as the Dodd-Frank Act—that boards face today,” says Randy Ramirez, regional practice leader in compensation and benefits with BDO. The rebounding stock market also helped, given that most directors are partly paid in equity.
