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How are Outside Directors of a Board Paid by Paul Dorf
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How are Outside Directors of a Board Paid |
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Business
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Q: How are Outside Directors of a Board Paid? A: The typical compensation package for an Outside (non-employee) Director is made up of a number of elements and can vary according to the role of the Director within the Board. These elements include: · annual retainer; · chairperson fees (to compensate for services as a chair of a committee or the full Board. Often, committee chair fees can differ according to the committee on which the Director serves); · fees for attendance at Board meetings (in person and via tele- or video-conference); · fees for attendance at committee meetings (in person and via tele- or video-conference); · initial and annual grants of equity (usually in publicly traded companies). The size of the retainer and meeting fees paid to Outside Directors can vary significantly from company to company; generally, the size of the company is the major determining factor.
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