This study investigates the impact of board of director characteristic on the voluntary disclosure level of compensation practices and how this disclosure level influences the level of executive compensation. We focus on four board of director characteristics: (1) percentage of insiders on the board (2) separation of chairman and CEO positions (3) board size (4) outside director ownership. The results document that the percentage of insiders on the board is negatively related to the disclosure level of compensation practices, and CEO/chair separation is negatively related to the disclosure level. Board size is unrelated to the disclosure level. Board size is unrelated to the disclosure level. Outside director ownership is positively related to the disclosure level. In addition, this study finds that the compensation disclosure level is negatively related to executive compensation level.