Fred Whittlesey in his Compensation Blog writes about 50 ways to pay your board. And the recipient of that compensation may be able to defer some or all of that compensation. While many companies have nonqualified deferred compensation arrangements under which independent directors can defer all or a portion of the fees otherwise payable to them for their services, many do not. In these situations, an independent director may be able to establish his or her own qualified retirement plan. The basis for contribution to such a qualified retirement plan is “earned income”, i.e., compensation derived from personal services. The plan type? Defined benefit or defined contribution depending upon one’s individual situation.