Two recently disclosed U.S. research papers about boards of directors showed the key themes faced by such boards and address current director compensation in the U.S. As concerns compensation, the research agency The Corporate Library disclosed their Preliminary 2008 Director Pay Survey, containing information on about 3,000 publicly listed companies and 27,000 directors.

Four results deserve to be highlighted: 1) The 500 companies in the S&P 500 index spent an average of US$ 2 million on director compensation in 2007; 2) Total director compensation rose by 11% relative to last year, with an average individual raise of 12% for each director; 3) This was the third year in a row with double-digit increases in director compensation, despite growth rates having decreased in comparison with previous years; and 4) Average individual director compensation was around US$ 200,000/year. According to Fortune magazine, the best-paid board was Freeport-McMoran Copper & Gold Inc. (US$ 14.7 million). Individually, the best-paid director was Michael Miles, of Dell Inc., who received US$ 4.08 million.

Concerning the key themes to be addressed by directors, PricewaterhouseCoopers, jointly with Corporate Board Member magazine, presented the results of their survey What directors think, which consulted 1,000 board members. Strategy, succession planning and executive selection are matters deemed as top priorities by boards of directors. Furthermore, more than half replied that there is a shortage of qualified board members. Among the various fields of knowledge, almost 40% of directors surveyed said that it is difficult to find potential board members with good expertise in finance. Only about 50% believe that their boards have been effective or very effective in monitoring the risks to which their companies are exposed.

Finally, a paradoxical finding: though 67% believe that good governance practices improve the company’s reputation in the market, 73% don’t believe, even with all of the recent evidence, that corporate governance is a relevant factor in determining share prices.