For further information: Kay Worrell, (212) 339-0480
For Immediate Release #4444A
COMPANY STOCK SPURS 11% RISE IN OUTSIDE DIRECTORS' PAY THIS YEAR
NEW YORK, September 30, 1998 -- Outside company directors enjoyed an 11% increase in median total compensation this year, largely because companies are increasingly offering stock as well as basic pay, according to an advance report released today by The Conference Board.
The report shows that while basic pay for outside directors was virtually the same this year as in 1997, stock compensation boosted total compensation packages to a median of $45,000.
The survey results cover 614 companies in manufacturing, financial, and service companies.
Median total annual compensation, including stock paid to outside directors, is highest in manufacturing at $51,000-11% higher than the comparable figure for 1997. Among financial firms, the median total figure for 1998 is $42,475, up 16% from 1997. In service companies, the median total of $42,115 is 11% more than last year.
STOCK USE IS STILL INCREASING
"A majority of companies use some form of stock compensation," says Kay Worrell, Research Associate at The Conference Board and author of the report. "Use of stock payment is reported by 88% of all surveyed companies in 1998, continuing a trend of increase."
Types of stock payment include stock options, restricted stock, annual grants, and one-time grants when new members join the board.
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Source: Corporate Directors' Compensation in 1998, #1226-98-AR, The Conference Board
Information on ordering this publication can be obtained by calling The Conference Board's Customer Service Department at (212) 339-0345. Copies are available free to the media (Please call 212-339-0231).
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