Extract from IDS Executive Compensation Review 323

Non-executive director fees in the FTSE 100

Escalating fee levels for non-executive directors (NEDs) of public companies have been attracting attention over the last few years and it is no coincidence that this followed the 2003 Higgs Report and the revised Combined Code. In the first of a two-part survey this article looks at NED fees in the FTSE 100 and next month we will look at rates in the mid-250.

In line with past findings our eighth annual review of NED fees once again suggests that rates are increasing at a relatively high pace, although not as fast as in previous years. A look at the growth in actual median rates over the last few years shows a similar picture. Our most recent findings, taken from the latest available annual accounts, are based on fee data for 749 FTSE 100 NEDs on the boards of 77 FTSE 100 companies. Detailed information is provided on fee levels and increases, with tables showing the range of fee levels for NEDs; matched median and average recent or proposed increases; chairmanship and membership rates; and a detailed table outlining NEDs fees by committee chairmanship.