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In Director Pay, One Size Fits Many

Company size has minimal effect on the level of director compensation, Hay Group survey shows. (Irv Becker of Hay Group)

By Susan Kelly | Updated on August 15, 2012
Pay for directors at U.S. companies rose only slightly last year, and the level of director pay was little affected by the size of the company. A survey of 300 large companies by consultancy Hay Group found median director pay rose to $227,250 in 2011, up 6% from $213,774 in 2010.

According to Hay Group, the median pay for directors at largest of the companies surveyed—those with annual revenue of more than $40 billion—was only 21% higher than that for directors at the smallest companies—those with revenue of less than $10 billion. The median pay for directors at the largest companies was $252,500 last year, up 6% from 238,100 in 2010, while the median for those at the smallest companies was 209,000, up 5% from $200,000.

“When you really look at director compensation, it’s a very narrow range,” says Irv Becker, national practice leader of Hay Group’s U.S. compensation practice, noting that executive pay shows wider ranges between the largest companies and smaller ones. “We’re seeing minimal differences between the organizations with director pay.”

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