Boards of Directors’ Compensation

Striking the right balance with board pay is part science and part art …

Most people will agree that boards of directors received a bye in the first year of Say on Pay. In 2011, shareholders voted on executive pay, but did not punish board members irrespective of how off the charts some pay practices appeared. The net is that board members are spending more time on their board roles. However, in the 2012 proxy season, we may see more board members “voted off the island.” Increased demands coupled with the unique requirements of each board means that board pay should be fair, but not egregious.  Farient provides a number of services to keep boards of directors’ compensation defensible and balanced. From board peer reviews to developing compensation programs, we have worked with numerous companies across industries to make board compensation relevant to the market, fair to board members, and a non-event for onlookers.

Copyright 2011 - Farient Advisors, LLC

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