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KPMG SURVEYS DIRECTORS' COMPENSATION IN THREE KEY INDUSTRIES

 LOS ANGELES, Jan. 6 /PRNewswire/ -- The Compensation and Benefits Practice of KPMG Peat Marwick, the international accounting and consulting firm, has published a study of the fees paid to directors in 300 major publicly held financial, industrial and service companies. The sub-industry groups surveyed for the financial industry include: banks, thrifts, insurance companies and diversified financial companies. The sub-industry groups surveyed for industrial companies include: automotive, chemicals, computers, office equipment, electrical, energy, food & beverages, tobacco and pharmaceuticals and personal care. The sub-industry focus for service companies includes: retail, transportation, utilities and diversified services.
 "Like executive compensation, directors' pay has come under heavy fire in the past several years," states Donald T. Sagolla, partner in charge of the Los Angeles-based Western Region Performance and Compensation Practice. "That's because directors are the ones who set CEO pay and because the elements of directors' pay closely resemble executive pay." Sagolla adds that, "With greater demands placed on directors, not to mention increased liability through shareholder suits, what our survey confirms is that their pay has risen."
 Based on information obtained from 1992 proxy statements, the Directors' Compensation study presents the following information for companies overall and by industry sub-group:
 -- Board Compensation: annual retainers and meeting fees for regular board meetings;
 -- Committee Compensation: information is provided on audit and compensation committee chairmen and members;
 -- Method of Payment: number of companies and average fees for companies that pay a retainer only, a meeting fee only, and retainer plus meeting fee, as well as the number of companies that pay board fees in stock;
 -- Deferred Compensation and Retirement Plans: the number of companies that allow directors to defer compensation, including the method of deferral (cash or stock); the number of companies that have retirement plans;
 -- Stock-Based Compensation: the number of companies that offer stock options, restricted stock and stock grants; and
 -- Potential Total Fees: total fees (retainer, meeting fees, committee fees) under various assumptions of board service and method of payment.
 Through 135 offices in the United States, KPMG Peat Marwick provides industry-specific accounting, taxation and consulting services to a broad range of businesses and other organizations in the financial, commercial and service sectors. The worldwide KPMG network has more than 76,000 people operating in 125 countries.
 -0- 1/6/93
 /CONTACT: Raelene Arrington of KPMG Peat Marwick, 213-955-8639/


CO: KPMG Peat Marwick ST: California IN: SU:

BP-MS -- LA016 -- 2271 01/06/93 14:49 EST
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Publication:PR Newswire
Date:Jan 6, 1993
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