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I I I I II I I I I I I I I I I I DH~S Review July 8 1985 Trends in compensation of outside directors In its latest study, K.orn/Ferry International reports that the average earnings for all eutside di~ec[ors were $18,800 in 1984, up 29% from the comparable'earn'ings in 1980. The study covered 600 of the 1,000 largest U.S. companies. Compensation figures for various industries are shown below: Compensation of Outside Directors 1984 vs. 1980 Average Annual Plus Per-Meeting Fee Percentage Type of Company 1984 1980 increase Industrials: $400 - $600 million $15200 $10,800 41% $1 - $3 billion '20,300 18,200 12 $5 billion and over 26,300 22,100 19 Banks and other financial institutions 17,500 12,000 46 Retailers 21,400 13,200 62 Service companies 18,900 - - Average $18,800 $14,600 29% Compensation for committee service is not included. As in the past, the larger the company, the higher the compensation. In 1984, the upper quartile average pay for all d irectors was $27,100, with aver- ages ranging from $14,100 for industrials in the $200-$400 mill ion revenue category to $36,100 for $5 billion and over companies. Former NYSE head shares insights on leadership At a recent conference sponsored by the Student-Alumni Council at Ohio State University, William M. Batten, former CEO of J.C. Penney Co. and later Chairman of the New York Stock .Exchange, shared his insights on the primary qualities of leadership. A capsule version of his views: · Ability to Set an Example-By setting an example, a leader motivates employees and makes it easier for other top executives to do so as well. · Purpose-A personal goal, to be worthwhile, should be reachable only with extraordinary effort. A leader is known for his "relentless pursuit of excellence." · Respect-It's the individual who makes the difference in an organiza- tion. A good leader recognizes this and respects people as individuals. · Trust-When you give people your trust, many will be motivated to perform better because they want to live up to your expectations. · Communication-A leader should listen as well as inform, Listening is more than the absence of talking. It is an active mental process.