Trends in Director Compensation
(Businessweek) — Directors of large technology companies, those in the Nasdaq 100, historically have been better paid than their counterparts at large general-industry companies in the NYSE 100. This is largely because technology companies base director compensation more on stock options, while general-industry companies rely more on cash and stock awards. In the wake of governance lapses and increased stock market volatility, data from Frederick W. Cook & Co. show that Nasdaq companies’ director compensation practices are maturing and becoming similar to those of NYSE companies. Differences in directors’ pay levels and program design are narrowing, although the gap is far from being closed. (For more information on these trends, see our eighth annual research report on directors’ compensation.)
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