AngeBlog by Basil Peters

Director Compensation References

There is still very little information available on director compensation for early and mid stage companies.

These are a few good ones, but please send us any that you find so we can share them with everyone who reads AngelBlog.

1. The Angel Capital Association website has a good article by George McQuilken of eCoast Angels. This was presented at the New England Angel Summit.

His group believes that for a very early stage angel backed company a director should earn 1% of the total equity vesting over two years. This is 0.5% per year. The article is available here.

2. The Western Compensation & Benefits Consultants (www.wcbc.ca) reported their National Board of Directors Compensation Survey in November, 2006. A few of their data points for average annual cash retainers, meeting fees and additional Chair compensation for companies with revenues under $100 million are compared to our survey here.

3. Roger Gurr is a an expert in director, management and executive compensation. He is a frequent speaker at conferences and seminars. He speaks on director compensation annually at the BC Directors Club breakfast. At his presentation on December 14, 2006 he provided some valuable data (slide 30) that is also summarized on the Director Compensation Survey page. Roger also uses the rule of thumb that the independent directors comp should approximately equal the CEOs total comp (slide 29).

4. Mike Volker is a well known Angel investor and Angel Fund manager in Vancouver, BC. He wrote and excellent article on director compensation in angle backed companies titled: Building a better board starts with better compensation. Its available here. The article helps develop the rule of thumb that the total compensation for the board should equal the CEO's compensation package - including cash and equity.

5. The HayGroup Newsletter 2007 No. 1 summarized recent compensation increases at S&P 500 companies here.

If you come across some similar references on early and mid stage company director compensation, please add a comment or send me an email.