Board of Director Compensation Benchmarking and Design
Increased scrutiny from regulatory bodies and various stakeholders has put greater emphasis on the importance of establishing, and adhering to, a clear process for making director pay decisions. CAP helps public and private boards recruit and retain directors equipped to steer their organizations toward a sustainable future with pay programs that are both competitive and defensible.
Although director pay data is tightly clustered and increasingly homogenous across public companies, certain design questions should be addressed with tailored solutions to ensure alignment between the unique needs of an organization and an evolving corporate governance landscape. CAP uses market analytics to advise committees on competitive and differentiating program designs that promote sound corporate governance principles. These processes include analyzing:
- Board recruitment and structure
- Comparator group director pay
- Chair and committee compensation
- Director pay limits
- Stock ownership requirements
CAP also is uniquely positioned to help private companies on their director pay programs. With MLR Media (Directors & Boards, Family Business and Private Company Director), CAP maintains a proprietary database of private company director compensation and governance.
Along with crafting customized solutions in our advisory role, CAP regularly publishes reports about director pay that are frequently cited by peers and media outlets. Learn more about CAP’s expertise in director compensation here or contact us for additional information.