Corporate director pay rose 29% in the past two years, according to The Conference Board of Canada’s biennial Compensation of Boards of Directors 2003 survey, which was released Tuesday.

The increase in compensation reflects greater performance expectations on board members, and a demand for directors that outstrips the supply of candidates for directorships.

“Increased responsibilities for board members and a supply-demand gap are driving director compensation upward,” said Prem Benimadhu, vice president, organizational performance. “Organizations are demanding better trained and more committed board members. The use of performance measurement for boards is increasing among our survey respondents. Internal accountability requirements for board members are also on the rise.”

Potential compensation for outside directors increased 29% among firms responding to the survey in both 2000 and 2002. The average amount of compensation for board members in all responding organizations is $21,943. A total of 162 firms in 15 industry classifications responded to the 2002 survey, the 15th edition of the biennial report.

While stock ownership continues to increase as an element of compensation for outside directors, so does the prevalence of stock ownership guidelines. In 2002, 91% of publicly traded firms used stock, up from 85% two years ago. The percentage of organizations reporting stock ownership guidelines — both mandatory and non-mandatory — grew to 57%, from 36% in 2000.