Compensation of Boards of Directors: 14th Edition

The report updates the 1998 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 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 18.2 per cent over the last two years among a core group of 59 companies that provided data in 1998 and 2000.
  • Compensation for directors varies significantly depending upon the size, sector and industry of a firm.
  • The highest compensation levels are found in the chemicals, pharmaceuticals and allied products industry, followed by oil and gas and general manufacturing.
  • The use of stock as an element of board compensation continues to increase.
  • Organizations continue to focus on the effectiveness and assessment of the board and its members.

• The proportion of organizations with female directors continues to increase, up from 65 per cent in 1998 to 73 per cent in 2000. However, the percentage of directors who are women remains low; only 8 per cent of board chairs are women.