If you are intrigued by the prospect of becoming a Non-Executive Director (NED), one of the first things you might want to know is how much you can expect to get paid.
As with most roles, Non-executive salaries are not a set amount and can vary quite widely depending on the size of the company you represent.
However, by conducting in-depth research you can get a good general idea about how much NEDs can expect to earn. We’ve summed up our findings throughout this blog.
Earnings to Expect as a Non-Executive Director
The range of earnings is varied and depends primarily on the size of the company and the sector. The lower paying roles are for smaller companies, despite these often demanding more of your time. Companies that are listed in the stock market often pay from £25,000 to £40,000. Whereas small companies pay more like £15,000 to £20,000 per year.
According to the FT, average fees for a Non-Executive Director have gone up 41 per cent over the last decade. The FT has previously highlighted figures from Deloitte suggesting the base fees are:
- £43,200 for smaller FTSE companies
- £50,000 for FTSE 250 companies
- £83,000 for the top 30 companies in the FTSE 100
These figures are supported by the Guardian, who found that for a FTSE 100 company a non-executive can earn anywhere from £40,000 to £100,000 a year.
Also, it should be mentioned that non-execs should usually commit 15 to 25 days at board meetings every year. It is by no means easy work and certainly involves far more than showing your face at meetings.
How Non-Executive Directors Can Get Paid More
If you have set your sights on earning top wages as a NED, target larger companies. If you possess the right experience and specialist knowledge and portray these effectively via your CV and online profiles then the opportunities will arise.
You are essentially being paid for your industry insights and skill set as a Non-Executive Director, with the aim being that your ability will help the company become a success. You are far more likely to get into the higher-paying bracket when you have more experience to offer. This might take years to build up, so don’t be disheartened if you aren’t accepted for a non-executive position with a larger firm when first starting out.
It is likely that you will start by offering your services to smaller companies and then move into larger companies once you have the experience and a portfolio that shows you can make an impact as a NED. It could even be worth taking on some pro-bono positions to build up your experience.
Of course, many Non-Executive Directors also work for more than one company at the same time. It’s not unheard of for some NEDs to hold down a full-time job whilst acting as non-executive for another company.
Consider Becoming a Non-Executive Director
If you have the right amount of experience to offer, you could become a Non-Executive Director. This could be an especially good option if you are approaching retirement because it can be a useful way to earn money without the pressures of being involved in the day-to-day decision making of a business. On top of that, it can also be incredibly satisfying when you use your skills and knowledge to help a company to succeed and thrive.
If you think a role as a Non-Executive Director might suit you, it could be worth considering your options. Although you should obviously take up a position that delivers a fee you want to earn, your first step should be finding a company you want to work for, rather than how much they are paying you.
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