AngeBlog by Basil Peters

Director Compensation Plan - Mid Stage Company

This is an example director compensation plan for mid stage companies (total capitalization of $10 to 50 million.)

Director Compensation Plan - Cash Retainers and Meeting Fees

 
 

Private Companies

Public Companies

Annual Retainer
Per Meeting Fee
Annual Retainer
Per Meeting Fee
Outside Director
$8,000 to $12,000
$600 to $1,000
$12,000 to $25,000
$1,000 to $1,500
Chairman
$12,000 to $18,000
$1000 to $1,500
$25,000 to $45,000
$1,000 to $1,500
 

(1) Phone meetings are usually paid at 50% of face to face meetings.

(2) Committee meetings are usually paid at 50% of board meetings.

(3) Annual, or bi-annual, retreats are usually paid at the same rate as board meetings (in other words this additional contribution of two to five days per year is 'built in' to the annual retainer). The retreats are mandatory for all active (i.e. paid) directors.


Notes:

1. These are current cash compensations for engaged, active boards that are recruiting for good quality, independent directors.

2. In addition to this cash compensation there is an equity compensation of approximately equal value.

3. These are based on our survey results from late 2006 and the other surveys described on that page.

4. These assume the Chair is very active and contributing about 50% to 100% more time than a typical independent director.

5. This data also correlates well to the small amount of other data available.

6. In a follow up post in mid 2008, it seems that director compensations are continuing to rise and that these numbers may now be low.