SINGAPORE companies kept a tight rein on fee increases for non-executive and independent directors in the last financial year, despite more frequent board meetings and, in some cases, increased revenue.

A study of about 180 listed companies shows that half either kept average director fees at the same level or reduced them last year.

The firms surveyed include the 30 companies comprising the benchmark Straits Times Index as well as most mid-cap firms and some small-cap ones.

Although many local listed companies were still growing last year, there was a 'general reticence' to increasing director fees, noted Freshwater Advisers, which conducted the study.

'Our analysis shows clear signs that companies are being cautious with directors' fees in these difficult times,' said Freshwater managing director Jon Robinson.

'Even though (non-executive and independent directors) costs are typically less than 0.1 per cent of revenue, companies do want to show that they are sensitive to shareholders' concerns.'

About 28 per cent of companies studied reduced such fees by a median average of 11 per cent, while 21 per cent kept fees the same.

The half which increased average fees did so by a median average of 17 per cent, with 73 per cent of these companies also reporting a rise in revenue.

The average fee for non-executive and independent directors rose by about 7 per cent from 2007 to 2008 - from $50,000 a year to $53,540 - as the amount of increases was larger than the decreases.

Directors were also being called on to work harder last year, said Freshwater. The number of board meetings increased by 6 per cent and audit committee meetings by 7 per cent.

Read the full report in Wednesday's edition of The Straits Times.