Median company director pay increased by 3% in 2024, averaging about $242,000 across public firms, according to a Feb. 3 report from the National Association of Corporate Directors and consultancy Pearl Meyer.
Total direct compensation continues to grow amid rising expectations and responsibilities for corporate boards, the report found.
“Directors today operate in a complex and fast-paced environment that requires agility and adaptability,” Peter Gleason, CEO and president of NACD, said in a statement. “The commitment needed for board membership has increased significantly due to oversight of emerging risks related to economic uncertainty, along with oversight in areas of human capital, technology and cybersecurity.”
Based on trends from 1,400 public companies across 24 industries, median total direct compensation ranged from nearly $165,000 at micro firms (between $50-$500 million in revenue) to more than $323,000 at the top 200 firms on the S&P 500. Micro companies had the largest annual increase at 10%, as well as the greatest increase during the past several years.
In addition, the percentage of companies giving retainers to their audit, compensation and nominating/governance committees increased during the past decade, ranging from 76%-88% in 2014 to 87%-91% in 2024.
Committee chair compensation also remains common, particularly as the roles and responsibilities of boards and primary committees have expanded and specialized committees have declined.
Director compensation programs have become more streamlined as well, and overall compensation practices tend to align with governance standards and shareholder expectations, the report found.
“While year-over-year changes in board pay have been modest, the scrutiny boards face continues to increase,” Ryan Hourihan, report author and managing director at Pearl Meyer, said in a statement. “It’s important for boards to understand how they compare to market practice to ensure their programs are competitive and capable of attracting the caliber of director expected by shareholders.”
