FAIRFAX STATION, Va. - The popularity of pensions for corporate board members has peaked, according to a study of 220 companies by Executive Compensation Reports.
Retirement plans or policies are maintained by 67% of the 220 companies the firm surveyed in 1994 vs. 66% of the 200 companies in its 1992 study.
Eligibility requirements for pension benefits have changed. Eighty-two percent of 1994 programs, compared with just 60% of 1992 programs, specify a service requirement for eligibility.
While eligibility requirements have stiffened, companies may be encouraging board members to retire earlier. The proportion of plans that mandate a minimum retirement age dropped from 46% in the 1992 study to 40% this past year.
Like retirement plans, the prevalence of elective deferred compensation programs has peaked. It remained stable at 73% from 1992 to 1994.
