A recent member-requested Society Quick Survey on Director Education Expense Reimbursement practices garnered responses from approximately 130 members, which can assist other members with benchmarking their board practices in this area.
Noteworthy results include:
- Over 92% of companies reimburse their board members for director education expenses.
- About 60% of companies have a written director education policy – either included in the corporate governance guidelines or a similar governance document (42%) or in the form of a standalone policy (18%).
- The majority (58%) of companies that reimburse don’t require directors to obtain pre-approval before incurring director education expenses; nearly 32% require pre-approval.
- Most companies (about 58%) reimburse directors the full amount of expenses incurred regardless of whether the director serves on multiple boards. About 26% request - but don’t require - directors serving on multiple boards to prorate their expenses among their boards.
- Over 83% of policies/protocols don’t have annual limits on their director education expense reimbursements.
Access additional resources on our Director Education and Board Practices pages.