PM&P On Point: 2012 Board Pay and Governance Practices Survey

Executive compensation programs are far more complex than those of Non-Exec directors. However, as companies come under increasing scrutiny around pay packages, this Pearl Meyer & Partners’ On Point survey provides some interesting and useful insight into the payment of Non-Executive Board members.

Designed to gain a better understanding of how Non-Executive Directors think about their own compensation, including how their pay programmes should be targeted and structured, we show some interesting results around the process of setting, and expectations of Non-Exec pay.

This survey was conducted online between February 10, 2012 and March 26, 2012, in the US.  Participants included 125 Non-Exec Board members, 28 Directors and 10 employees in the compensation function.

Respondents addressed a range of pay and governance topics including:

• Board diversity
• Board education and Human resources/compensation experience
• Directors’ time commitments
• Compensation Philosophy
• Reviewing and adjusting Non-Exec Board pay
• Factors in setting Non-Exec Board pay
• Non-Exec Board and Executive Director committee compensation vehicles
• Additional pay for role of Chair of the Board
• Special Board payments

 
Executive Summary (Opens in new window)