Comments on: Pier One gives its directors a big raise… http://www.footnoted.org/uncategorized/pier-one-gives-its-directors-a-big-raise/ Michelle Leder's guide to what's hiding in SEC filings Wed, 19 Nov 2008 21:42:56 +0000 http://wordpress.org/?v=2.6.3 By: Brennan Browne http://www.footnoted.org/uncategorized/pier-one-gives-its-directors-a-big-raise/#comment-5667 Brennan Browne Fri, 20 Jun 2008 20:07:18 +0000 http://www.footnoted.org/?p=1877#comment-5667 Pier One is not the only company whose directors have gotten a raise. Non-employee director pay at Fortune 500 companies increased by 7.2 percent from 2006 to 2007, rising from a median of $162,000 in 2006 to $173,640 in 2007. This includes annual retainers paid in cash or equity, as well as meeting fees. It does not include committee fees, additional fees paid to lead directors or sign-on grants for new directors. It’s also noteworthy that the elimination of meeting fees is a trend across the Fortune 500. The prevalence of companies providing meeting fees declined from 57.4 percent in 2006 to 52.0 percent in 2007. Pier One is not the only company whose directors have gotten a raise. Non-employee director pay at Fortune 500 companies increased by 7.2 percent from 2006 to 2007, rising from a median of $162,000 in 2006 to $173,640 in 2007. This includes annual retainers paid in cash or equity, as well as meeting fees. It does not include committee fees, additional fees paid to lead directors or sign-on grants for new directors.

It’s also noteworthy that the elimination of meeting fees is a trend across the Fortune 500. The prevalence of companies providing meeting fees declined from 57.4 percent in 2006 to 52.0 percent in 2007.

]]> By: Jake http://www.footnoted.org/uncategorized/pier-one-gives-its-directors-a-big-raise/#comment-5455 Jake Thu, 15 May 2008 14:54:51 +0000 http://www.footnoted.org/?p=1877#comment-5455 Jim get a life......LIF with an E Jim get a life……LIF with an E

]]> By: Michelle Leder http://www.footnoted.org/uncategorized/pier-one-gives-its-directors-a-big-raise/#comment-5454 Michelle Leder Thu, 15 May 2008 13:38:41 +0000 http://www.footnoted.org/?p=1877#comment-5454 Thanks, James, for the correction, which I've fixed. As I've said many times before, everyone needs an editor! Thanks, James, for the correction, which I’ve fixed. As I’ve said many times before, everyone needs an editor!

]]> By: James McQuaide http://www.footnoted.org/uncategorized/pier-one-gives-its-directors-a-big-raise/#comment-5446 James McQuaide Wed, 14 May 2008 22:34:11 +0000 http://www.footnoted.org/?p=1877#comment-5446 Bed Bath & Beyond's ticker is BBBY. Best Buy is BBY. Bed Bath & Beyond’s ticker is BBBY. Best Buy is BBY.

]]> By: Michelle Leder http://www.footnoted.org/uncategorized/pier-one-gives-its-directors-a-big-raise/#comment-5431 Michelle Leder Tue, 13 May 2008 21:01:09 +0000 http://www.footnoted.org/?p=1877#comment-5431 I agree that being a director now is a lot more difficult than it was in the past. But I still find it hard to believe that there's not a lot of smart people who wouldn't jump at the chance to make $150K a year (more once options are factored in) for what is still a part-time job. What's also interesting is that Pier One provides no real explanation on the reasoning for raising the retainer nearly five-fold. If they were having difficulty finding directors willing to make $33K, then they should have said so. There's also the point on why similar companies are paying far less for their directors. Are we really supposed to believe that serving on, say, Bed, Bath & Beyond's board, is so much more desirable? I agree that being a director now is a lot more difficult than it was in the past. But I still find it hard to believe that there’s not a lot of smart people who wouldn’t jump at the chance to make $150K a year (more once options are factored in) for what is still a part-time job. What’s also interesting is that Pier One provides no real explanation on the reasoning for raising the retainer nearly five-fold. If they were having difficulty finding directors willing to make $33K, then they should have said so. There’s also the point on why similar companies are paying far less for their directors. Are we really supposed to believe that serving on, say, Bed, Bath & Beyond’s board, is so much more desirable?

]]> By: Gary Reed http://www.footnoted.org/uncategorized/pier-one-gives-its-directors-a-big-raise/#comment-5419 Gary Reed Tue, 13 May 2008 00:17:13 +0000 http://www.footnoted.org/?p=1877#comment-5419 Your analysis and conclusion might have been right up until SarBox, but it misses today's reality. First, though, few if any companies want a director who joins the board because of the fees she'll receive. And, because of so much more work now - not to mention liability - far fewer qualified people are interested in serving on more than one board besides their own company's. The effect is to shrink the pool of qualified candidates. Higher board fees is just an inducement to sway a potential director, but not a very effective one. More & more standing CEOs are asking, "Why in the world would I want to be on another board?" Your analysis and conclusion might have been right up until SarBox, but it misses today’s reality. First, though, few if any companies want a director who joins the board because of the fees she’ll receive. And, because of so much more work now - not to mention liability - far fewer qualified people are interested in serving on more than one board besides their own company’s. The effect is to shrink the pool of qualified candidates.
Higher board fees is just an inducement to sway a potential director, but not a very effective one.
More & more standing CEOs are asking, “Why in the world would I want to be on another board?”

]]>