Mandatory Equity Deferrals for Directors On the Rise

A small but growing number of boards are requiring that directors defer a portion of their annual equity compensation until after board service ends, although some experts caution that such an approach could potentially come back around as a hindrance in board recruiting.

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Deferral Differences

A look at director compensation plans using MyLogIQ, an SEC compliance and public company intelligence provider, shows that companies such as Anthem, AT&T, DTE Energy, Merck & Co. and Travelers Companies pay directors in deferred stock units or require a period of deferral.

Typically, equity compensation is deferred until after a director leaves the board.