Companies in the S&P 500 spent an average of $2.194 million on total compensation to their boards of directors in the past year, according to a study of 3,085 U.S. corporations released today by The Corporate Library. By contrast, all of the corporations in the study spent an average of $1.079 million on total board compensation.
American International Group Inc., Honeywell International Inc. and Northrop Grumman Corp. were among nine companies that paid more than $2 million in the cash component of total compensation to the board, the 23-page study said.
Total compensation includes cash payments, equity awards and changes in value of pensions and non-qualified deferred compensation amounts. The data cover the corporate proxy statements filed by Aug. 31. Last year was the first time the SEC required companies to disclose total compensation paid to directors, the study noted.
In the previous year, based on a TCL study of data it collected on 2,815 companies, the average total board compensation was $950,600. For those same 2,815 companies in its latest study, the average total was $1,126,002.