Director Compensation Project: 2016
The Race to the Bottom is foremost a corporate governance blog. The Blog is, however, run by students. Students supervise the activities of the Blog and regularly write posts. Topics for post can include cases, no action letters (particularly in the Rule 14a-8 space), and analysis of proxy statements.
Today we start a series of posts that examines compensation paid to directors. Until 2006, director compensation was mostly disclosed in narrative form. Reforms in 2006 required a disclosure compensation table for directors. As a result, the "total compensation" provided to directors became easier to determine and easier to compare. Also, the table had to include more than cash and equity. Other compensation picked up any other benefits provided to directors.
Students have examined a number of proxy statements, mostly of larger companies, and reviewed the compensation. The posts generally include director compensation, CEO compensation, and other information from the proxy statements.