European boards have too little skin in the game

No self-respecting board would pay a company’s CEO entirely in cash. Yet for directors themselves, at least in Europe, it’s the norm.

Non-executive board members in London, Amsterdam and Frankfurt typically pocket cash fees while owning a relatively small slither of stock. It means they often have minimal financial interest in common with the shareholders they ostensibly represent. Giving them more skin in the game, as is common in the United States, could help improve directors’ engagement ...