Trends in Director Compensation in Singapore
A recent report has revealed a notable shift in the compensation of directors in Singapore-listed companies. More directors are now earning SGD50,000 (US$38,000) or less annually, indicating a decline in boardroom pay levels for 2025. This trend is highlighted in the Singapore Directorship Report, which is published every two years by the Singapore Institute of Directors.
Changes in Pay Segments
The proportion of independent directors earning within this lower pay range increased significantly from 16% in 2023 to 29% in 2025. Meanwhile, the number of non-independent directors falling into the higher pay bracket—SGD100,001 to SGD150,000—has decreased. In 2025, around 20.6% of these directors received such compensation, compared to 42% in 2023.
Prof Ho Yew Kee, co-lead author of the report from the City University of Hong Kong, noted that “the data seems to suggest that there is a shift towards slightly lower directors’ fees.” This shift may be influenced by broader economic conditions and evolving corporate governance practices.
Variations Across Company Sizes
The report also highlights differences in director compensation based on company size:
- Large-cap companieshave the highest concentration of independent directors earning between SGD100,001 and SGD150,000. This reflects their complexity, broader board responsibilities, and ability to offer more competitive pay.
- Mid-cap firmshad the largest share of independent directors in the SGD50,001 to SGD100,000 range.
- Small-cap firmscontinued to have the highest proportion of directors earning below SGD50,000.
Director-CEOs and High Earnings
Among director-CEOs, 26.5% earned over SGD1 million, making them the best-paid board members. This underscores the significant financial rewards associated with leadership roles in larger corporations.
Increased Transparency in Remuneration Data
The study found that more companies disclosed detailed remuneration data for their director-CEOs in 2025. The percentage of companies providing such information rose to over 69%, up from around 26% in 2023. This increase is attributed to the revised listing rules by the Singapore Exchange and growing stakeholder expectations for transparency at the top leadership level.
Areas for Improvement
Despite the progress in transparency, the report authors pointed out that there is still limited visibility into how remuneration is structured and how it aligns with performance outcomes among Singapore companies. They emphasized that boards should take the opportunity to provide more detail and clarity on this front.
Conclusion
The findings of the Singapore Directorship Report highlight a complex landscape of director compensation, with varying trends across different company sizes and director types. While there is a noticeable shift toward lower pay for some directors, the overall picture remains one of ongoing evolution in corporate governance and remuneration practices.