Management Practice recently released a summary of its 23rd annual director compensation and corporate governance survey. The survey data is based on information from 403 fund boards. Overall, fund directors participating in the survey experienced an average pay increase of 5.9% during 2015 (less than the average 7.2% increase in 2014). According to the survey results, directors of mid-sized fund complexes (with assets of between $10 billion and $50 billion) had the greatest compensation increases during 2015, with average increases of 15 – 20%. According to Management Practice, the higher than average increase may be due to the complex issues faced by many mid-sized fund complexes making pay increases necessary to attract qualified board candidates.
Sixty-seven percent of the complexes participating in the survey had an independent chair and 22 percent had a lead independent director. The survey found that a majority of the independent chairs and many lead independent directors received additional compensation – in amounts ranging from $10,000 to $200,000 (with an average of $37,500 additional compensation). Committee chairs also received additional compensation of $10,000 to $30,000.