Independent director pay continues to rise

Steady growth in the number of companies paying a sitting fee of ₹100,000 or more per board meet

- KRISHNA KANT

Compensation paid by companies to their directors has become cause célèbre because boards are getting larger, with more independent directors (IDs) and non-executive directors (NEDs).

According to the 2024 edition of Excellence Enablers' Survey on Corporate Governance, there has been a steady rise in the number of companies paying ₹1 lakh or more per board meeting.

However, those paying ₹50,000 or less number the highest, says the survey. In FY24, 29 companies from the Nifty 100 paid a sitting fee of ₹1 lakh or more for each board meeting, up from 21 in FY21 and 26 in FY23.

In comparison, 36 paid ₹50,000 or less in FY24, down from 42 in FY21 and 40 in FY23.