Comp Falls for External Board Directors

December 20, 2001 ( - Median total compensation for outside directors of boards decreased this year from 2000 figures, chiefly due to stock market weakness, since many outside directors are paid, at least partly, in options, according to The Conference Board's annual study of outside director compensation.

Results of the study, which examined 660 companies, show that compensation for outside directors:

· in the manufacturing sector is $51,000, down from $68,000 last year.
· in the service sector, it’s $48,000, compared with $57,000 in 2000, and
· in financial services it has fallen by $750 to $40,250

And, excluding their stock option grants, this year outside directors:

· in manufacturing earned $39,000, compared to $37,200 in 2000
· in financial services, received $35,705, against $30,000 last year, and
· earned $35,000 in the services sector, compared to $33,000

Fatter Checks for CEOs

Total compensation for CEOs was higher in all industries in 2000, except transportation, which was unchanged, according to another study by The Conference Board.

The second study, of 1,920 companies in 13 major industries, showed that total median CEO compensation last year was:

· highest in financial services at $3,754,000,
· followed by computer services at $2,756,000,
· construction at $2,123,000,
· communications at $2,000,000,  and
· insurance at $1,856,000