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Board of Director Compensation

The Composition of Board Pay: Fair, Not Egregious

Increased demands coupled with the requirements required of all boards to be future-ready. Is director compensation keeping pace? Board pay should be fair but not egregious. Farient provides several services to keep board compensation defensible and balanced. From board peer reviews and full-board evaluations to the development of compensation programs, we work across all industries to make board compensation relevant to the market, fair to board members, and a non-event for onlookers.

Striking the Right Beat with Board Pay is Part Science, Part Art

Directors continue to devote more time and energy in their roles given the expansion of Board committee remits. The rise of activist investors from all corners of the world means more board members are at risk of being “voted off the island,” which adds reputational risk to an already demanding job. Increased time and intellectual firepower demands coupled with the unique requirements of each board means that director pay should be fair, but not egregious.

Board of Directors’ compensation, including its strategy, level, and execution sets the tone for both investors and management on what matters. Farient Advisors provides unparalleled services to keep Board of Directors’ compensation defensible and balanced. From board peer reviews to developing compensation programs to board evaluations, we have worked with numerous companies across industries to make board compensation relevant to the market, fair to board members, and a non-event for onlookers.

This service includes:

Pay Strategy

Director compensation needs to appropriately balance shareholders’ interest with competitive market forces for attracting qualified Directors

Peer Group(s)

Director peer groups typically mirror the senior executive peer group

Pay Level and Mix (including benefits)

Director compensation should incorporate the desired pay strategy and align with the company’s business strategy

Policies (including special situations)

Director compensation policies should cover a variety of issues, including vesting, share ownership guidelines, compliance, and pay limits

We’re Here for You

Let us know how we can help you think differently about executive compensation and its alignment with performance.