Director stock grants on rise.

Large U.S. companies are showing an increasing eagerness to offer their directors stock grants. An analysis of 350-major industrial and service enterprises' proxies conducted by William M. Mercer, Inc. found 73% of the companies granted stock to directors, a significant increase from the 63% of a year earlier. Much of the increase was attributed to a rise in the offer of stock options, up from 28% last year to 37% in 1994.

"We're seeing an increasing number of companies that have instituted stock ownership guidelines for outside directors, not just executives," observed Susan P. Eichen, CPA, a principal with Mercer. "I suspect we'll be seeing a lot more directors holding equities so they can share stockholder interests more closely."

Eichen did not think the trend was a result of the controversy over an accounting standard on employee stock option plans proposed by the Financial Accounting Standards Board. Rather, she saw it as a continuation of a trend: Stock plans were offered first to executives, then to general employees and more recently to directors.

The median annual director's retainer, consisting of cash and stock, was $26,725. The average fee for attending corporate meetings was $1,000, which, with retainers, added up to an annual total averaging $45,000, not including the present value of stock options.