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The Compensation Handbook, Sixth Edition: A State-of-the-Art Guide to Compensation Strategy and Design, 6th Edition by Dorothy Berger, Lance Berger

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28

Board Compensation

NORA MCCORD

Steven Hall & Partners

Directors today operate in a landscape dramatically different from the one they have occupied historically. The recent economic collapse, high-profile failures in risk oversight, annual elections of directors, regular say-on-pay votes, and the advent of activist investors using director elections to agitate for immediate results have all contributed to this new reality. Far more time and effort are demanded, greater expertise is needed, and the risks of board service are higher. Directors are also subject to greater oversight by shareholders, voting advisory services, special-interest groups, and a critical media, all of whom scrutinize board decisions. This redefinition of the director ...

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