Compensation of Boards of Directors: 13th Edition

This report updates the 1996 survey of compensation levels and practices of boards of directors. It provides benchmark data on compensation practices and summarizes various key factors in the board operations of a representative cross-section of the Canadian business community.

Document Highlights

Highlights of this biennial survey of compensation levels and directorship practices include:

• The average annual potential compensation for outside directors has increased by 12 per cent over the last two years.
• Interest in the use of stock as an element of board compensation has increased significantly.
• Organizations are increasing their focus on the effectiveness and assessment of the board and its members.
• The average board has 12 directors and holds six meetings per year, each lasting approximately four hours.
• The proportion of organizations with women directors has increased from 62 per cent in 1996 to 65 per cent in 1998. However, the percentage of directors who are women remains low, at 11.4 per cent, and only 6 per cent of board chairs are women.