This article explores the ins and outs of non-executive director compensation, the benefits of becoming an NED, and actionable steps on how to transition into these sought-after positions.
Key takeaways
- Non-executive directors (NEDs) are typically paid an annual fee rather than a salary.
- Remuneration varies significantly depending on organisation size, sector, complexity, time commitment and committee responsibilities.
- Typical UK NED fees range from £10,000 to £90,000+ per annum, with listed companies generally paying higher fees than charities (pro-bono), public bodies and smaller private companies.
- Committee chair positions, particularly audit committee chair roles, often attract additional remuneration.
- While compensation is important, aspiring NEDs should focus first on gaining relevant board experience, developing governance expertise and building a strong board profile.
- NED roles provide strategic influence, professional development opportunities and portfolio career flexibility, but also carry legal duties, responsibilities and liabilities.
Understanding non-executive director remuneration
One of the most frequently asked questions by aspiring board members is: “How much do non-executive directors get paid?”. The answer depends on the type of organisation, the scope of the role and the time commitment involved.
As a reminder, a non-executive director (NED) is a board director who provides independent oversight, constructive challenge and strategic guidance without being involved in the day-to-day management of the organisation. Unlike executive directors, NEDs are not employees of the company and are usually remunerated through an annual board fee rather than a salary.
As organisations face increasingly complex governance, risk, cybersecurity, sustainability and stakeholder challenges, boards are placing value on non-executive directors who can contribute their expertise and independent judgement across a range of issues and topics.
What do non-executive directors get paid?
NED remuneration varies considerably across sectors.
As a broad guide:
| Organisation type | Typical annual NED fee |
|---|---|
| Small private companies | £10,000 – £25,000 |
| Medium-sized private companies | £15,000 – £40,000 |
| Large private companies | £30,000 – £70,000+ |
| AIM-listed companies | £40,000 – £60,000+ |
| FTSE SmallCap companies | £35,000 – £50,000+ |
| FTSE 100 companies | £75,000 – £100,000+ |
| NHS organisations | Typically from £13,000 |
| Charities and trusteeships | Often unpaid |
Recent market data indicates that median fees for FTSE 100 non-executive directors are now approximately £80,000 per annum, although remuneration varies significantly depending on committee responsibilities and company size.
AIM-listed companies continue to offer attractive remuneration packages, with many NED roles falling within the £40,000-£60,000 range.
For NHS non-executive directors, the national remuneration framework continues to provide a base annual fee of £13,000, with additional payments possible for specific responsibilities.
Non-executive director fees versus salary
NEDs are generally not paid a salary in the traditional sense. A salary is compensation paid to an employee for carrying out an executive or operational role. A director fee is remuneration paid to a board member for providing governance oversight, strategic input and independent challenge.
Most NED appointments involve a defined annual fee based on an expected time commitment, typically ranging from 15 to 30 days per year, although some appointments require significantly more involvement (which the remuneration should reflect).
What factors influence NED remuneration?
1️⃣ Organisation size and complexity
Larger organisations generally pay higher fees because board responsibilities are more demanding and the associated risks are greater. A FTSE-listed company board typically oversees significantly more complex operations, regulatory requirements and stakeholder expectations than a small private company.
2️⃣ Sector
Certain sectors traditionally offer higher remuneration than others. Financial services, investment companies, regulated industries and listed companies often pay more.
3️⃣ Time commitment
Not all board roles require the same level of involvement.
Some appointments involve six board meetings per year and limited committee work, while others may require the equivalent of one day per week, particularly during periods of transformation, acquisition activity or organisational change.
4️⃣ Committee responsibilities
Additional fees are commonly paid to committee chairs.
An audit committee is a board committee responsible for overseeing financial reporting, internal controls, risk management and the relationship with external auditors. Audit committee chairs are often among the highest-paid committee leaders due to the technical expertise and regulatory responsibilities associated with the role.
Other committee chair roles may include Chair of the Risk Committee (if separate from Audit), Remuneration Committee, Nomination Committee, Sustainability Committee, etc.
Why pursue a non-executive director role?
For many professionals, remuneration is only one aspect of the opportunity. For aspiring NEDs, compensation should be a secondary aspect as it is common for the first role to attract low if not no remuneration.
NED roles offer several additional benefits.
🔸Strategic influence
Non-executive directors contribute to decisions that shape the future direction of organisations.
🔸Portfolio career opportunities
Many experienced executives build portfolios comprising several board positions alongside advisory, consulting or executive work.
🔸Professional development
Board service develops governance, strategic thinking, stakeholder management and leadership skills.
🔸Expanded networks
Serving on boards provides access to senior leaders, investors, regulators and fellow directors across multiple sectors.
How to become a non-executive director
1. Develop a clear board value proposition
Boards appoint individuals who bring expertise, experience and perspectives that complement existing board capabilities.
2. Strengthen your governance knowledge
Understanding directors’ duties, governance frameworks, board dynamics and committee structures is essential. Professional development and board-focused education can accelerate your readiness for a first appointment.
3. Build your board profile
A board-ready CV, targeted networking strategy and strong professional visibility are often critical factors in securing interviews.
4. Leverage board-focused networks
Many board opportunities are filled through professional networks, referrals and executive search firms.
Membership with NEDonBoard, Institute of Board Members, provide access to board vacancies, events, peer networks and professional development opportunities for aspiring and experienced board members.
5. Consider a stepping-stone appointment
Many successful NEDs begin by serving as:
- Charity trustees
- School governors
- Advisory board members
- Committee members
These roles can provide valuable governance experience and strengthen future board applications.
6. Pursue board training and certification
To stand out, consider obtaining a professional qualification. Such a non-executive director training course can equip you with a deep understanding of board responsibilities, governance practices. When it comes to the NED Accelerator Programme, it provides a structured pathway to a board appointment.
Important considerations before accepting a NED role
While board positions can be rewarding, they also carry significant responsibilities. Directors have legal duties under company law and can be held accountable for board decisions.
Before accepting an appointment, you want to:
- Conduct thorough due diligence on the organisation.
- Understand the expected time commitment.
- Assess potential reputational risks.
The most successful NEDs view remuneration as one factor among many when evaluating board opportunities.
Recommendations for aspiring NEDs
- Focus on building governance credibility before focusing on remuneration.
- Gain practical board experience wherever possible.
- Invest in professional development and continuous learning.
- Build a long-term board portfolio strategy rather than pursuing individual appointments opportunistically.
Frequently Asked Questions
How much does a first-time non-executive director typically earn?
First-time NEDs typically secure pro-bono appointments or positions that pay a small fee.
Are non-executive directors paid a salary?
Typically no. Most NEDs receive an annual fee rather than a salary because they are not employees of the organisation.
Do charity trustees get paid?
Charity trustee roles in the UK are voluntary and unpaid, although reasonable expenses are often reimbursed.
Which committee chair role is usually the best paid?
Audit committee chairs are frequently among the highest-remunerated committee chairs due to the technical expertise and regulatory responsibilities involved.
What is more important than remuneration when seeking a first NED role?
Board experience, governance knowledge, sector relevance and a clear value proposition are generally more important than compensation when securing a first appointment.
Next steps
Whether you are exploring your first board appointment or building a portfolio of non-executive roles, understanding board remuneration is only one part of the journey.
Developing the skills, governance knowledge and board profile required to contribute effectively in the boardroom remains the most reliable route to securing and succeeding in non-executive director positions.
NEDonBoard, Institute of Board Members, supports aspiring and experienced non-executive directors through professional development, board training, networking opportunities and access to board vacancies.
The article is written by Elise Perraud, Chief Operations Officer at NEDonBoard, non-executive director, board trustee and committe chair.
Updated on 9 June 2026.
