Emerging Trends in Board Total Compensation

The collapse of several large US companies and evidence of weak corporate governance have awakened government, regulators, stock exchanges and leading executives to respond to the crisis proactively, transparently and comprehensively to regain investor and shareholder trust. Board reform has become...

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Bibliographic Details
Published inCompensation and Benefits Review Vol. 36; no. 2; pp. 45 - 53
Main Author Zong, Linda
Format Journal Article Trade Publication Article
LanguageEnglish
Published Saranac Lake SAGE Publications 01.03.2004
SAGE PUBLICATIONS, INC
Subjects
Audits
Boards of directors
Committees
Compensation
Corporate governance
Directors
Equity
Executive compensation
Fees & charges
Polls & surveys
Reforms
Responsibilities
Restricted stock
Retainers
Stock options
Strategic planning
Trends
United States > US
board of directors
board retainers
director compensation
compensation committees
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Summary:The collapse of several large US companies and evidence of weak corporate governance have awakened government, regulators, stock exchanges and leading executives to respond to the crisis proactively, transparently and comprehensively to regain investor and shareholder trust. Board reform has become the driving force behind the increase in board total compensation, especially the cash retainers and stock awards; the establishment of differentiated premiums for committee chairs; the growing support for creating lead director positions and increase in number of outsiders; as well as the establishment of share ownership guidelines, board charters, evaluations and performance reviews. Facing the emerging trends in board total compensation, companies need to evaluate and overhaul their current board structures and compensation programs to strike a proper balance between equity and cash payments. By doing so, organizations will be better poised to attract and retain qualified and independent directors with sufficient financial and technical expertise who are expected to take on a larger role in improving corporate governance.
ISSN:0886-3687
1552-3837
DOI:10.1177/0886368703262657