In 2006 the US Securities and Exchange Commission (SEC) released new rules on the disclosure of executive and director compensation. This change was intended to give companies more direction on how they provide executive and director compensation information. As a result, the annual Conference Board report, ‘Directors’ compensation and board practices’ has changed its methodology in line with the new SEC rules. Previously the survey used information obtained by a mailed survey of corporate secretaries representing the membership of The Society of Corporate Secretaries and Governance Professionals. This year’s data was provided by Salary.com. 2288 companies were surveyed using data based on proxy and financial statements filed with the SEC as of June 2007. The survey also explores issues such as size distribution of boards of directors, age, number of members on selected board committees, percentage of companies using lead directors, and companies with a non-CEO chair. In terms of compensation, the report looks at cash retainers for board members, total compensation, compensation mix (e.g. cash, stock, and stock options), and compensation for serving on or chairing a major board committee (e.g. audit, compensation, or nominating).
Current London Business School students, faculty, staff and alumni can access the full report from the Conference Board Research database, which can be found on the A-Z list of library databases via Portal.