For Release Monday, November 11, 2002 Release #4745A
CEO PAY RISES IN MOST INDUSTRIES, OUTSIDE DIRECTOR PAY ALSO UP IN ALL INDUSTRIES, THE CONFERENCE BOARD REPORTS IN ANNUAL COMPENSATION STUDIES
Median total compensation for outside (non-employee) directors of U.S. boards in 2002 is up slightly from last year's medians in all three major industry sectors covered in The Conference Board's annual study of outside director pay. The study is based on a survey of director compensation and board practices in 662 companies.
In the manufacturing sector, total compensation for outside directors is $55,700, up from $51,000 in 2001. The financial sector increased very slightly from $40,250 to $41,450. Service was virtually unchanged -- $48,400 this year. It was $48,000 last year. Total compensation includes annual, one-time or periodic grants of stock, restricted stock grants, and the value of option grants.
Basic annual compensation, the mix of fees, retainers and committee pay, is down in financial services, $31,600 in 2002 compared with $35,705 last year. The other sectors are practically unchanged. The table on the next page compares median basic compensation and total compensation for 2001 and 2002 in the three major industries.
TOTAL COMPENSATION RISES FOR CEOs Median total compensation for CEOs was higher in all industries in 2001 (the latest year for which official data is available) except retail trade and telecommunications, which were unchanged, The Conference Board reports in its annual study of top executive pay. The report is based on data from 2,841 companies in 14 major industries. It reports total compensation (salary, bonus and the value of long-term incentives), total current compensation (salary plus bonus) and salary for companies' five highest-paid executives. Total CEO compensation was highest in financial services at $1,936,000. It was lowest in the transportation industry at $753,000. Total compensation (salary plus bonus) was also highest in financial services at $1,352,000 and lowest in transportation at $540,000. Communications paid the highest median salary -- $600,000. Lowest was computer services, which paid $384,000.
Sources: Top Executive Compensation in 2001, Report # 1323;
Directors' Compensation and Board Practices in 2002, Report # 1324 --- Sent from UnionMail Service [http://mail.union.org.za]