What Do Non-Executive Directors Earn at FTSE 100 Companies?
NED fees have risen steadily — but the role has grown more demanding too
The Price of Oversight
Non-executive directors (NEDs) are the cornerstone of UK corporate governance. They provide independent oversight, challenge management, and protect shareholder interests. But unlike executive directors, they receive relatively modest compensation — typically a fixed annual fee with no bonus or equity component.
Fee Structure
A typical FTSE 100 NED fee structure includes:
- Base fee: £60,000 – £120,000 per year for a standard NED role
- Committee chair premium: Additional £15,000 – £40,000 for chairing Audit, Remuneration, or Risk committees
- Senior Independent Director: Additional £10,000 – £25,000
- Board Chair: £300,000 – £800,000+ (a significantly more demanding role)
The Time Commitment
NEDs are typically expected to commit 25-35 days per year to each board role. In practice, this can be considerably more — particularly during crises, M&A activity, or regulatory interventions.
The combination of increasing regulatory expectations, personal liability exposure, and reputational risk has made the NED role more demanding than ever. Fee levels have risen accordingly, but many argue they haven't kept pace with the growing burden.
Committee Premiums
Audit committee chairs command the highest premiums, reflecting the technical expertise required, personal liability under the Companies Act, and intensive interaction with external auditors.
Remuneration committee chairs have become increasingly contentious roles, facing shareholder scrutiny and media attention around executive pay decisions.
Risk committee chairs — common in financial services — deal with complex regulatory frameworks and can spend significantly more time than their base commitment suggests.
The Talent Pipeline
As governance expectations rise, companies increasingly compete for experienced NEDs. This has created a "NED market" where individuals with the right combination of sector expertise, board experience, and independence are in high demand.
Browse all non-executive compensation data on our Board Cost Rankings page.