CPA & Business Advisory Blog

Overview of Public Company Board Compensation Programs

We are pleased to provide you with a copy of “The BDO 600, a 2010-2011 Survey of Board Compensation Practices of 600 Mid-Market Public Companies.”  This survey reviewed the SEC filings of 600 companies in eight industries with revenues of between $25 million and $1 billion to see how the companies’ board compensation programs were designed, and what changes had occurred since 2009.  The survey found that:

  • Overall, total board compensation (both cash and equity) increased 2% over 2009 levels; board compensation increased the most in the technology industry (6%).
  • Revenue size did not have a significant influence on the total compensation provided to the board members
  • In general, board compensation is split evenly between cash and equity; but, there are significant differences between industries (for example, financial institutions provide most of the benefit in cash, and technology companies provide most of the benefit in equity)
  • Equity grants continue to be made primarily in the form of outright grants of stock, as opposed to stock options

We hope that you find the survey interesting and useful.  If you have questions about the survey, or about the board and executive compensation area in general, please post a comment below or contact our Compensation & Benefits Advisory Services Group at 440-449-6800.

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