As companies pursue and retain non-executive directors to serve on their boards, they must ensure the pay programs offered to these individuals remain attractive in an ever-increasing competitive talent pool. WTW’s Global Executive Compensation Analysis Team (GECAT) completed its annual year-over-year comparison of S&P 500 director pay program results, tracking differences between 2021 and 2020 proxy data. The latest review of non-employee director compensation shows an increase in total direct compensation driven by changes to both cash and equity compensation.
Specific key findings include:
Title | File Type | File Size |
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S&P 500 Director Pay Trends: WTW’s Global Executive Compensation Analysis Team Mar 2022 | .6 MB |
Just under two-fifths of companies (39%) reported making pay program changes in 2021 compared with 55% of companies reporting changes in the prior year. Nearly one-fifth of companies (18%) increased their annual equity grant, 13% of companies increased their annual cash retainer, and 15% of companies adjusted their non-core pay elements. Though the COVID-19 global crisis continues, a better understanding of its impact may lead to an amount of pay program changes that are more in-line with prior years.