Board Member Compensation: As the risks grow, so do the rewards

Board members at several of Michigan's public companies will enjoy better compensation for their time this year as corporations compete to retain knowledgeable businesspeople in their boardrooms, even as the positions take on more responsibility.

"Attractive board members don't need the money," said Samuel Hayes, professor of finance at Harvard Business School and a member of several corporate boards.

The money isn't what gets board members' attention, Hayes said, but the liability does. And the liability of serving on a corporate board has escalated since the stream of accounting scandals at such major corporations as Enron Corp., Tyco International Ltd. and WorldCom Inc. shook investor confidence earlier this decade.

See full Article.