Watson Wyatt Data Services’ Newest Report Covers Latest Trends in Board of Directors Compensation Policies & Practices
ROCHELLE PARK, N.J., (January 10, 2008) – Watson Wyatt Data Services, a wholly-owned subsidiary of Watson Wyatt Worldwide, today announced the publication of its 2007/2008 Survey Report on Board of Directors Compensation, Policies & Practices, now in its thirty-ninth edition.
The database from which this report is compiled includes information regarding 758 Boards. It is comprised of the responses of 150 organizations who participated in this year’s survey, plus data extracted from the proxy statements of 608 leading industrial, service and financial companies.
Topics covered within the report include:
o Trends in Director Compensation
o Compensation for Board Service
o Committee Service
o Committee Fees and Retainers
o Long-Term Incentive Programs
o Liability Insurance
o Insured Benefits and Pensions
o Corporate Legacy Plans
o Travel Expenses
Annual adjustments to Outside Director compensation are made by 70.3 percent of responding organizations. The highest incidence of this practice was found to be in the Health Care Sector (83.3 percent), whereas the lowest occurrence was found to be in the Not-For-Profit Sector (35 percent).
In organizations that increased meeting fees, the average increase was 54.6 percent. Across all matched organizations, fees rose just 4.3 percent.
Increases to annual retainers paid to Outside Directors increased an average of 49.7 percent in the 148 organizations (25.1 percent of 590) increasing the retainer paid for 2007. Across all matched organizations (all 590), retainers averaged 12.3 percent higher.
Meeting fee increases for Committee Chairpersons ranged from a low of 2 percent to a high of 6.6 percent for all matched organizations. Retainer increases (in dollars) for the Committee Chairperson (in organizations increasing retainers in 2007) ranged from a low of $3,682 (78.3 percent increase) to a high of $6,716 (93.1 percent increase).
For the entire matched organizations sample, average meeting fee increases for Outside Directors ranged from 2.7 percent to 6 percent. Among the various committees, annual retainer increases for Outside Directors ranged from 2 percent to 4.6 percent for all matched organizations.
The 2007/2008 Survey Report on Board of Directors Compensation, Policies & Practices is available in a printed format.
About Watson Wyatt Data Services
Watson Wyatt Data Services (WWDS), a wholly owned subsidiary of Watson Wyatt Worldwide, is a leading provider of compensation, benefits, and employment practices information to the global employer community. From offices around the world, we solicit, analyze, and publish an extensive library of printed, interactive and online survey reports. Our compensation databases are recognized worldwide as the most reliable source of current data for compensation planning.
Global scope, local knowledge …
Covering more than 95 countries across six continents, our data centers in the U.S., Canada, Europe, Asia, and Latin America annually compile reports on the remuneration, benefits, and employment practices of local and multinational companies. Our “in-country” experts apply their local knowledge of the varied employment markets, practices, and customs to deliver a complete compensation picture that can be used to create sound, market-based pay programs for entire organizations. Our international databases contain compensation information covering millions of employees based on the annual survey participation of organizations ranging from emerging growth companies to many of the world’s largest conglomerates.
In addition to compensation surveys, WWDS also publishes references that help HR practitioners attract, retain, and reward exceptional employees. These guides cover a wide variety of subject areas, including variable pay, performance management, and personnel policies on a local, regional, and global basis. For more information, visit our Web site at WWDS.com.
For more information, contact:
Pamela Holland-Moritz
Watson Wyatt Data Services
Tel: (201) 843-1177, extension 3446
E-mail: Pamela.Holland-Moritz@watsonwyatt.com
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