Company Directors Average Pay Jumps 12% to Pass $160,000 in 2006; CEO Pay Was $7M
The study found that 41% had separate chairmen and CEO positions last year, up from 37% in 2005.
Only 3 of 30 Dow components have an independent chairman - McDonald's, American International Group (AIG), and Walt Disney Co. Three other Dow components - Microsoft, Intel and Wal-Mart, have insiders serving as non-executive chairmen.The typical CEO of an S&P 500 company earned just under $7 million in 2005.
ISS Study Highlights:
54% of companies granted stock options to directors in 2006, down from a peak of 74% in 2002, on rising stock-option backdating issues and tougher corporate-governance rules.
57% of the companies have lead directors, who oversee the board's decision-making, compared with barely 3% in 2002.
70% of the companies have boards at least two-thirds filled with independent directors, or directors who have no close business or financial ties to the company.
85% of companies last year have fully independent audit committees, which oversee the finances of companies, compared with 70% in 2002.
The number of classified boards, those with staggered terms for directors, fell to 55% in 2006 from 59% the year before.
Institutional Shareholder Services (ISS) report 2007 Board Practices, Board Pay Study examines the board structure and compensation of boards of directors at S&P 1500 companies based on 2006 disclosures.
directors' average pay passes $160,000
CEOs less likely to be chairman, directors' pay up