How Much Money Do Board Members Make

Being a member of a corporate board may have its downsides, but it also has, in many cases, some excellent benefits.

At in one case, being a member of the lath of directors of an S&P 500 company might have meant attending a few meetings a twelvemonth, having some meals at the company'south expense, and scoring a nice stipend.

Those days are probably over for most publicly traded U.S. companies every bit demands for board oversight have been increasing lately.

In its most recent annual survey of corporate board members, PricewaterhouseCoopers pointed to several issues board members are dealing with today: civilization bug, cybersecurity issues, and calls for increased diverseness on boards themselves, among others.

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Beingness a member of a corporate board may accept its downsides, but it besides has, in many cases, some excellent benefits. For example, board members are usually compensated in a combination of cash and stock awards, including a retainer, fees for coming together attendance, and boosted retainers for committee chairs and members.

Research firm MyLogIQ LLC has compiled a ranking of manager compensation at all S&P 500 companies. Here is MyLogIQ's list of the 25 S&P 500 companies with the highest total board bounty. The information was calculated from the company's proxy filings for 2017.

25. CSX Corp. (NYSE: CSX)

• Total lath compensation: $4.86 million
• Boilerplate compensation per board member: $324,195

24. Chubb Ltd. (NYSE: CB)

• Total lath bounty: $iv.86 million
• Average bounty per board member: $324,218

23. Amgen Inc. (NASDAQ: AMGN)

• Total board compensation: $4.93 million
• Average compensation per board member: $328,916

22. Oracle Corp. (NYSE: ORCL)

• Total board compensation: $iv.98 million
• Average bounty per board member: $552,899

21. Comcast Corp. (NASDAQ: CMCSA)

• Total lath compensation: $5.00 million
• Average bounty per board member: $416,281

20. International Business organisation Machines Corp. (NYSE: IBM)

• Total board bounty: $five.01 1000000
• Boilerplate bounty per lath member: $334,068

xix. Salesforce.com Inc. (NYSE: CRM)

• Total lath bounty: $v.31 million
• Boilerplate bounty per lath member: $530,719

eighteen. Citigroup Inc. (NYSE: C)

• Total board bounty: $5.35 meg
• Boilerplate compensation per board member: $297,407

17. Ford Motor Co. (NYSE: F)

• Total board compensation: $5.36 one thousand thousand
• Boilerplate compensation per board member: $357,385

16. Illumina Inc. (NASDAQ: ILMN)

• Full board compensation: $5.42 one thousand thousand
• Average bounty per board member: $492,524

xv. Allergan plc (NYSE: AGN)

• Total board compensation: $five.57 million
• Average compensation per board member: $464,450

xiv. Mylan NV (NASDAQ: MYL)

• Full board bounty: $five.59 meg
• Boilerplate compensation per board member: $465,432

13. Equity Residential (NYSE: EQR)

• Full board compensation: $5.62 million
• Average bounty per board fellow member: $468,571

12. Wells Fargo & Co. (NYSE: WFC)

• Total board compensation: $5.74 million
• Average compensation per board fellow member: $337,668

11. Vertex Pharmaceuticals Inc. (NASDAQ: VRTX)

• Full board bounty: $5.93 million
• Average compensation per board member: $658,361

10. Everest Re Group Ltd. (NYSE: RE)

• Total board bounty: $5.98 million
• Boilerplate compensation per board fellow member: $747,278

ix. Philip Morris International Inc. (NYSE: PM)

• Total board compensation: $6.08 million
• Average compensation per lath fellow member: $506,626

8. General Electrical Co. (NYSE: GE)

• Full board compensation: $half dozen.26 million
• Average compensation per board member: $347,825

7. Coty Inc. (NYSE: COTY)

• Full board bounty: $half dozen.29 million
• Average compensation per lath fellow member: $786,444

6. The Goldman Sachs Group Inc. (NYSE: GS)

• Total board compensation: $vii.34 million
• Average compensation per lath member: $560,131

five. Roper Technologies Inc. (NYSE: ROP)

• Full board compensation: $7.79 million
• Boilerplate compensation per board member: $973,923

four. Fidelity National Information Services Inc. (NYSE: FIS)

• Total lath compensation: $vii.90 meg
• Average compensation per board member: $790,388

3. Incyte Corp. (NASDAQ: INCY)

• Total board compensation: $seven.92 million
• Average compensation per board fellow member: $ane.xiii million

2. Regeneron Pharmaceuticals Inc. (NASDAQ: REGN)

• Total lath compensation: $23.88 1000000
• Boilerplate compensation per lath member: $two.17 one thousand thousand

one. Twenty-Outset Century Fox Inc. (NASDAQ: FOXA)

• Total lath compensation: $25.57 million
• Average bounty per board member: $2.58 million

Detailed findings

Using the 250th ranked visitor, Applied Materials, as our case, the median cost of a board is around $ii.83 million a yr. Practical Materials has a ten-member board of which ix are independent directors. The board met five times in 2017, and every director attended at least 75% of lath and committee meetings. The company elects all board members annually.

Applied Materials paid each board member an annual retainer of $70,000 and a fee of $two,000 for each coming together attended. As of the 2d quarter of last yr, audit committee members began receiving an additional annual retainer of $25,000, human resource and compensation committee members receive an actress $12,500, and governance and nominating committee members receive an boosted $10,000. The board chairperson receives an boosted $150,000 annually, and committee chairs receive between $12,500 to $25,000 in additional retainer fees. Other fees and travel reimbursements are as well paid.

In addition to these cash payments, all nine not-employee directors received a stock award valued at $222,643 in 2017.

If Applied Materials is typical, how much are lath members paid in the extreme cases? The S&P 500 visitor that paid its directors the least was Berkshire Hathaway. The company pays a fee of $900 for each meeting attended in person and $300 for participating in whatever meeting conducted past telephone. A director who serves as a fellow member of the audit committee receives a fee of $1,000 quarterly. Directors are reimbursed for their out-of-pocket expenses incurred in attending meetings of directors or shareholders. Microsoft co-founder Pecker Gates was paid $ii,700 in 2017 for his service equally a Berkshire Hathaway director. The company did not written report whatsoever stock awards to directors in 2017.

At the superlative terminate of the rankings of board costs are media giant 21st Century Fox and pharmaceutical maker Regeneron. Both companies reported 2017 board costs of more $20 meg and were the only two companies to report board costs of more than $vii.9 million. Federal regulations require public companies to report payments made to directors for professional services to the company.

24/7 Wall Street is a U.s.a. TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.

Source: https://www.usatoday.com/story/money/business/2018/12/14/how-much-do-corporate-boards-pay-companies-highest-compensation/38637377/

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