Before we start this article, we would like you to ask these questions yourself-
How often do you analyze how much to pay your board members?
How can you tell if you are paying too much or not enough?
As we all know, the Board of Directors plays a very important role in running a company and there are many benefits that come with a well-functioning board of directors.
In fact, some would say that a properly functioning board can increase the value of an organization by as much as 20% over its competition.
But when it comes to board compensation we have seen many companies tend to struggle with it because it is difficult to find accurate benchmarks for director pay.
A company’s size, industry, structure, complexity, and number of yearly meetings are some of the variables they can use to determine remuneration for their board.
This is where Data-Driven Board Compensation Analysis comes into play.
Compensation analysis is a way of defining the compensation practices of an organization. It can be defined as a quantitative analysis that would measure all internal and external sources of income or expenses that contribute to the ‘business’ section of our capital assets management system.
This is why it is so critical for a company’s management team to know:
1) What the compensation structure is like for its board members;
2) Whether or not the current compensation plan is satisfactory based on market conditions as well as economic trends.
So if you perhaps want to update your compensation policies for board members according to the latest economic trends and in terms of fairness and consistency, we’ve got the right tool for you!
M500 CUSTOM REMUNERATION REPORT
To address the lack of compensation data in the market, M500 CUSTOM REMUNERATION REPORTS are the ideal way to analyze board compensation.
Get up-to-date and easy-to-read Remuneration reports to design your own data-driven target group and receive exclusive remuneration reports for the Board, CEO, and C-level positions.
MERIT500 conducts the Nordic region’s most comprehensive survey regarding the remuneration for the Nordic Board members, as well as of the CEO’s and C-level remuneration and its composition.
Rather than just relying on company reports or minutes from the Annual General Meeting, this information is also derived from the MERIT500 database.
In our target group analysis to see which companies are most suitable for benchmarking, we consider different criteria, for example, market value, sector, EPS, as well as other criteria as requested by the client.
This unique tool provides complete information including-
- Base salaries,
- Commission Payments, and other Financial Benefits
Based on the fees charged by the committees and the size of the committees, we calculate the average, median, maximum, and minimum remuneration for each Board member and the Chairperson of the Board.
M500 CUSTOM REMUNERATION REPORTS shows the remuneration estimates for current and previous years and whether it has increased, decreased, or remained the same.
And you know what the best part is?
We are one of the few personal databases that comply with GDPR in Sweden. (GDPR is an EU law that protects the rights of data subjects)
So are you ready to evaluate the salaries of your directors and executives based on market conditions as well as economic trends?
Get in touch with MERIT500 today!