Since the financial crisis, compensation for the directors of the nation's biggest banks has continued to rise even as the banks themselves, facing difficult markets and regulatory pressures, are reining in bonuses and pay, the New York Times DealBook blog reported today. At Goldman Sachs, where the average annual compensation for a director—essentially a part-time job—was $488,709 in 2011, the last year for which data is available, up more than 50 percent from 2008, according to Equilar, a compensation data firm. Some of the firm’s 13 directors make more than $500,000 because they have extra responsibilities. And those numbers are likely to skyrocket for 2012 because the firm’s shares rose more than 35 percent last year and its directors are paid in stock. Goldman defends the board’s pay, saying that the bulk of the compensation is in stock that directors cannot touch until after they have left the board. More broadly, banks and compensation experts say, financial firms must now pay a premium to entice and keep qualified directors. After the financial crisis, some financial firms' boards were criticized for being asleep at the wheel and not understanding the risks being taken. Recruiters say that banks are redoubling efforts to recruit directors with more financial expertise who can exercise better oversight.
