Board Compensation
Bulletins and articles related to setting trustee/director compensation.  Provides summaries of MPI's annual survey.

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file icon PERFORMANCE FEES FOR FUND DIRECTORS: PERHAPS IT IS TIME? 02/17/2010 Hits: 1127
Every now and then fund directors have a serious discussion about the merits of performance fees for the fund’s advisor. Perhaps the debate is incomplete and they should also discuss what it would mean if they decided to integrate a performance fee into their own compensation. Without taking a position on the relative advantages and disadvantages of this proposition, this bulletin explores this concept.
file icon More Work, Fewer Assets; Impact on Director and CCO Compensation - January 2009 01/20/2009 Hits: 1149
file icon Mergers and Meetings Drive Moderate Growth for Fund Director Pay in 2009 04/06/2010 Hits: 1458
     Management Practice Inc. (MPI) has just completed its seventeenth annual “Survey of Mutual Fund Director/Trustee Compensation and Governance Practices”, with data covering 1,902 directors from 374 fund families. Copies of, and specific comparisons to, the survey detail are available from MPI.
file icon Industry Dynamics Drive Fund Board Compensation Higher; 5% at Larger Fund Complexes 05/31/2011 Hits: 922
     Management Practice Inc. (MPI) has just completed its 18th annual “Survey of Mutual Fund Director/Trustee Compensation and Governance Practices”, with data covering 1,971 directors from 374 fund families. Full reports and specific board compensation comparisons are available from MPI.
file icon Fund Director Compensation Virtually Flat in 2008 04/10/2009 Hits: 1116
Year-over-year median compensation increased an average of 4.2% last year, with median compensation for all directors rising to $49,000 from $47,000.  This continues a trend of slower growth after more than five years of double-digit increases since the passage of Sarbanes-Oxley and the fund scandals at the start of the decade.  In the largest asset group, director compensation actually decreased by 1.4%.  While the need to attract directors with specialized knowledge and expertise continues—and is now perhaps more important than ever—many boards’ pay had “caught up” to reach fair levels over the past few years.
file icon Fund Director Compensation Reflects Industry in 2011 04/29/2012 Hits: 863

     Management Practice Inc. (MPI) has just completed its 19th annual “Survey of Mutual Fund Director/Trustee Compensation and Governance Practices”, with data covering 1,833 directors from 343 fund families. Full reports and specific board compensation comparisons are available from MPI.

     While experiencing ever-growing challenges and responsibilities, fund directors overall appear to have held their pay to modest increases.  Year-over-year (equivalent director) compensation increased an average of 3.2% in 2011 over 2010 levels.   Boards at larger fund families saw slightly higher increases of approximately 3.7%.

file icon Degree of Difficulty: A New Approach to Setting Fund Director Pay 01/14/2010 Hits: 1120
This bulletin discusses the issue of setting mutual fund director compensation and presents a new approach to solving this problem.