Mid-market boards play catch up.

• Position: BOARD REPORT - Statistical data

Ed. Note: Director compensation among middle market public companies is up 12% in fiscal year 2013, a significant jump from the 3% increase in the previous year. This is a key finding from "The BOO 600: 2014 Survey of Board Compensation Practices of 600 Mid-Market Public Companies," released by accounting and consulting firm BOO USA LLP in October 2014. Some additional data from the annual survey follow.

Average director compensation across eight industry verticals grew to $139,048 in fiscal year 2013, an increase from $124,615 in fiscal year 2012. This reflects a three-year high, indicating that improving economic conditions are enabling compensation to catch up to the increase in job responsibility, complexity and overall demands.

Full-value stock awards continue to make up the large majority of compensation across all surveyed middle market companies, comprising 45% of the overall pay mix and amounting to an average of $62,904. Board retainers and fees are largely unchanged, holding at an average of $53,774 (39% of pay mix). Committee retainers and fees at 6% and stock options at 10% continue to comprise the same portion of the overall pay mix.

The trend of favoring full-value stock awards as a way to provide long-term economic value without diluting company stock continues to be the prevailing strategy in developing director compensation packages.

"Directors have long been contending with rising responsibilities and job demands in a highly complex and regulated business environment, and, yet, last year, in the midst of this, compensation seemed to be leveling off," said Randy Ramirez, a senior director in the Global Employer Services Practice at BDO. "However, improving economic conditions and competition for qualified directors have allowed for a notable increase in compensation."

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