Awakening the directors within

With the ouster of Home Depot‘s Bob Nardelli and his resultant compensation package that was valued at about $210 million and Pfizer‘s Henry A. McKinnell’s which came to almost $200 million, it has brought the spotlight on excessive compensation packages for CEO’s.

So far this year it looks like it may become the biggest issue at the annual meetings of public companies. According to Donald Delves, a Chicago-based compensation consultant one positive outcome of all of this is that “There’s a sort of silver lining to the whole Nardelli, Home Depot thing. At least the shareholders finally spoke up.” (

Two thoughts:
1. It’s about time!
2. And what of the Directors who represent the interests of shareholders?

Director pay up 12%

Average board-member compensation climbed about 12 percent in 2006, to a mean of $160,439, according to a new study from Institutional Shareholder Services. Median pay increased 10.5 percent, to $143,123.

The increase was driven by a 16 percent rise in the value of equity-based compensation, according to the ISS, while the cash portion of a typical pay package rose just 5.2 percent. The study also observed, however, that stock options have a diminishing role in director compensation. (