Board pay on the rise.

• Position: DIRECTOR COMPENSATION

Longstanding trends continued in 2013. Median total direct compensation increased 5%, an uptick over last year's gain of 3%. The year-over-year increase in compensation for general board service was 7%, reflecting higher cash retainers and equity compensation values.

"Some companies may have been reluctant to increase directors' pay during the recession," said Teresa Bayewitz, principal with Mercer specializing in executive and board compensation. "With the economy on the mend, companies may now be trying to recover several years of increases in a single adjustment, resulting in more significant year-over-year increases than we've seen in the recent past."

Meeting Fees: According to Mercer's analysis, only 30% of companies in the S&P 500 paid meeting fees for board service in 2013--a meaningful shift from 2011 when 36% of S&P 500 firms paid these fees. Among the S&P 100, the prevalence was even lower (23% vs. 26% in 2011). For those companies that pay meeting fees, the amount remained unchanged in 2013 at a median of $2,000.

Cash Retainers: Offsetting the decline in meeting fees, the prevalence of annual cash and equity retainers continued to grow. Annual retainers were paid at nearly all (98%) of S&P 500 companies. Among these companies, the retainer increased from a median of $75,000 in 2012 to $80,000 in 2013.

The largest increases were observed at S&P 100 companies, where the annual retainer increased from a median of $90,000 in 2012 to $100,000 in 2013. For the companies that eliminated meeting fees in 2013,80% increased their annual retainers, most likely with the goal to keep total cash compensation stable year over year.

Equity Compensation: Only a handful of S&P 500 companies did not grant some type of equity compensation to their directors in 2013. At the median, equity compensation increased 7% from $130,800 to $140,400. The majority (85%) of companies determined equity compensation by targeting a fixed dollar value. Those that grant a fixed number of shares or options saw the dollar...