Extensive Board of Director Pay Review
SUMMARY
A large, publicly traded organization competing in North America for qualified directors of the board.
INDUSTRY
Financial Services
SOLUTIONS USED
Background
A large, publicly traded organization competing in North America for qualified directors of the board. Interest to review the competitiveness of current pay levels among different talent markets and to discuss the latest trends in board pay design.
Challenges
Broad talent market for Canadian and US directors including large-cap and mega-cap financial institutions in North America. We reviewed multiple reference groups to understand the range of board pay levels and design features across different talent markets. Plan design topics included the retainer structure, equity design, mix of cash & equity, premiums for the board chair and committee chairs and minimum share ownership.
Results
We identified the gaps to market. Costing analysis helped to determine the required spend to close the gaps over time, by individual directors and overall. We flagged other design features for monitoring over time, including the potential introduction of RSUs for directors and increases to committee chair compensation.