Developing a Board Compensation Plan
An integral part of selecting and retaining board members is making sure that their compensation is in alignment with their value to the company.
We help boards review their current board compensation and provide input based on industry trends and the responsibilities of the board.
- Attract the highest caliber board candidates
- Align directors with shareholder interests
- Compensate directors accurately for their involvement
Ensuring that your board of directors compensation is fair is vital to the success of your board. Retaining the best board members will keep your company in the hands of the most capable professionals. Your compensation plan must be in line with industry trends, the compensation plans of your competition, and the roles of the members.
A variety of factors play into the optimal compensation that works best for both your board members and company. They include, but are not limited to, company size and structure, number of board meetings each year, additional committee work, and any specific challenges that the board is responsible for overcoming. Furthermore, there are many methods of compensation to consider and regulatory hurdles that may apply to your business.
Don’t make the mistake of developing your own board of directors compensation plan. Having an unbiased third-party recommend the ideal amount and means of payment will correlate with a more stable board. As you well know, a stable board means a stable company. Shareholders and investors are more confident in the direction of the company when they see consistency in your corporate governance.
Contact Cardinal Board Services today to begin the process of navigating the complicated waters of board compensation. We will work together to implement the best compensation plan for your board.