Slow going

Although a number of supermarket boards reflect some movement toward more diversity, it's far from a national trend. Chief executive officers generally want more diversity on their boards, but little is being done to achieve that, according to a survey of the members of the National Association of Corporate Directors (NACD), Washington, D.C.

A survey last year showed virtually no change from the previous year. Of the boards surveyed, 59% have no women directors; 30% have one; 10% have two; and 2% have three or more. At the same time, 79% of CEOs said their boards have no minority directors; 18% have one; 4% have two; and 2% have three or more.

During the past two years, companies have shown more interest in paying directors in stock. More than 80% said directors should be paid in both cash and stock, but a growing minority (11% vs. 6% in 1995) feel that directors should be paid only in stock, while there was a corresponding decline in the number who feel that directors should be paid only in cash.

Seven of 10 companies now pay their outside board members a mix of cash and stock. Meanwhile, there has been an increase in the number of companies requiring directors to own stock, either by purchase or in payment. More than one-third of respondents said they had such a requirement. More than half of the companies surveyed required directors to own at least 1,000 shares of stock.

In nine out of 10 companies, the board is involved in strategic planning, and 77% of CEOs said their directors have a "significant influence" on strategy.