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Private Director Compensation Growth Accelerates - 2023 Private Company Board Compensation Survey

Lodestone Global recently published their 12th Annual 2023 Private Company Board Compensation Survey. The survey included 782 companies across 50 different industries and 38 countries to analyze current board practices and compensation around the world.

Compensation Increased +9.7% in 2023 Results

Median total compensation was $49,200 up +9.7% from the $44,850 reported last year (+4.9% growth in 2021). The increase is the result of a +10.6% increase domestically, offset by a +6.8% increase internationally. Hospitality firms saw the most growth this year, paying their directors +14.4% more year-on-year.

Hybrid is Here to Stay - Board Members Still Asked to Do More

In 2022, over 54% of companies reported adopting a hybrid approach to meetings (e.g., 2 out of 4 meetings per year held in person). This is up from 32% last year and compares to 95% of companies holding virtual meetings in 2020 due to the pandemic. Over 65% of the respondents indicated a preference for at least two in-person meetings per year.

In 2021, 75% of respondents indicated their companies had increased the number of meetings due to COVID-19. In 2022, that number remained at 76%. Many companies are employing special meetings/working sessions to deal with critical issues that have surfaced due to the pandemic (e.g., digital transformation, supply chain issues, etc.). The median number of meetings remained elevated at 4 Formal (5+ hours) and 4 Informal (~1-3 hours) per year.

Nearly zero temporary modifications to director compensation that were put in place in 2020 were reported in 2022. In fact, 59% of respondents reported increased pay commensurate with the increased meetings that have taken place since the onset of the pandemic.

Boards Drive Value

Boards continued to strongly impact company performance. Since implementing a board of directors, 96% of companies reported increased revenues and 91% reported increased EBITDA. Since the respondent joined the board, companies reported an average revenue increase of ~65%.

66% of the participants categorized their boards as “Indispensable” or “Very Effective” at driving corporate strategy. These results support the notation that a board with strategically selected directors can be essential to achieving corporate goals and improving profitability.

Historical Compensation Data

*Note: all figures are in USD, the data represents median values and assumes 4 in-person and 2 teleconference meetings for comparison.

2023 Private Company Board Compensation Survey

Board compensation growth is expected to moderate this year with only 39% of respondents projecting a rise in 2023 director pay – down from the 58% who expected an increase last year and 45% the year before.

You can purchase the full survey at

If you are interested in learning more about designing or benchmarking your board compensation scheme (Retainer, Per Meeting, Chairperson Fees, Committee Chair Fees, Cash vs. Equity etc.) please don't hesitate to reach out at It is critical to design a competitive compensation scheme to ensure you have access to top director talent.


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