NACD/PM&P Director

The 2006 Director Compensation Survey by Pearl Meyer & Partners for the National Association of Corporate Directors provides an invaluable look at pay practices among a broad-based group of 1,187 companies, across 26 industries, with revenues between $50 million and $9 billion. This comprehensive report also incorporates selected information from Pearl Meyer & Partners' own 2005 Director Compensation Study, covering Board pay practices at the 200 largest U.S. industrial and service corporations with revenues exceeding $8 billion.

Among the major findings:

• Double-digit pay growth for a second straight year across all revenue groups.
• A continued shift of more equity value into full-value share awards, with share awards the preferred vehicle at both the Large and Top 200 companies.
• Increases of between 50% and 100% in the number of companies differentiating pay for service on key board committee.
• A stabilization in the proportion of pay delivered in equity, after several years of slight decline.
• A striking increase in the establishment of stock ownership guidelines for Directors.

The 2006 Director Compensation Survey is available from the National Association of Corporate Directors at (202) 775-0509 or www.nacdonline.org.