The In Touch 'NED Salary Survey' reveals key statistics regarding non-executive directors remuneration.
34 per cent of non-executive directors say they expect NED salaries to rise in 2020, despite wide-ranging concerns over the economic impacts of a no-deal Brexit
The average paid salary for a NED role is now between £11,000 and £20,000, with those specialising in governance being the highest earners, In Touch’s new annual ‘NED Salary Survey’ discovers
More than a third of UK non-executive directors are expecting their salaries to go up in 2020, despite looming concerns around the economic impact of a no-deal Brexit, new insights reveal.
Leading coaching and development network for elite business professionals, In Touch, surveyed thousands of UK executives - in particular, non-executive directors (NEDs) - to understand more about their current salaries and benefits, as well as their expectations for the future.
The annual ‘In Touch NED Salary Survey’ discovered that the average salary band for a NED in the UK is between £11,000 and £20,000, with almost three in four (74 per cent) earning up to £20,000 for each board position.
While NED salaries have remained relatively steady over the last year, the general trend is positive, with average remuneration for non-executive directors increasing by between four and seven per cent in the last three years.
And although 45 per cent said they expected their NED salaries to stay the same in 2020, more than one third (34 per cent) were more optimistic about the potential for them to increase.
The top earners, those making £31,000 or more for each NED role, tend to be based in London, the South East and South West, and those who specialise in governance were the most likely to earn above this threshold.
And when it comes to gender differences, the survey highlights there is still a significant divide, with men (17 per cent) more than twice as likely to be earning over £31,000 per role than women (7 per cent).
“There are so many reasons for becoming a non-executive director, and for many, remuneration is an important consideration,” said Matthew Roberts, CEO of In Touch. “What this survey shows is that NED salaries, in the main, have stayed relatively flat over the last year, but there is optimism from many that these will go up despite ongoing uncertainty surrounding Brexit.
“Remuneration now averages around the £11,000 to £20,000 mark per position, but it is higher in some parts of the country. Similarly, those people with particular expertise such as governance, finance and accounting and business development, can command a higher salary.
“We’d hope, over time, that we’ll see the gender discrepancy narrow here in the UK in terms of NED salaries, and at In Touch, we remain advocates for greater diversity and equality at the senior levels of UK businesses.”
Networking was found to be the main way to secure a NED role, with more than 45 per cent of respondents saying it’s how they secured their position.
And the main time commitment for a NED in the UK is now between 11 and 15 days (25 per cent of respondents).
For more information on the annual In Touch NED Salary Survey, please visit https://join.intouchnetworks.com/download/ned-salary-survey/