The pay increase reflects rising hours of work annually for directors and risks to their reputations from activist shareholders’ campaigns, according to Joel Koblentz, who helps companies hire new directors as senior partner at the executive recruiter Koblentz Group in Atlanta. Rebounding stock prices in the economic recovery also play a role.
The rise since 2007 trails the 33 percent gain in S&P 500 CEO compensation, which averaged $10.7 million last year, according to executive-pay data provider Equilar Inc. It still trumps the 2.8 percent gain in per-capita disposal income for wage earners over the period, based on data from the U.S. Bureau of Economic Analysis.
“It’s kind of a conundrum,” Koblentz said. “Trying to find board members who are willing to step up and play their roles is a difficult task and you want to balance that out with appropriate compensation.”
About us…The Koblentz Group is a global executive and board of director search firm specializing in recruiting senior leaders and corporate directors. Over the past 30 years, its Partners have successfully conducted several hundred “sensitive matter” board recruitments for public companies, investor owned and private concerns. The Firm serves its clients worldwide.