If you are considering a career as a Non-Executive Director (NED), one of the first questions you will ask is: how much can I earn? The honest answer is that NED pay varies enormously - from pro bono first appointments through to annual fees exceeding £300,000 for chairs of major listed companies. What determines where you fall on that spectrum comes down to experience, sector, company size, and how strategically you build your board portfolio.
This guide is for experienced executives and leaders exploring or actively pursuing NED and Board Advisor roles in the UK. Whether you are weighing up your first pro bono placement or negotiating fees for a FTSE committee seat, we break down the latest 2025/2026 salary benchmarks, explain the factors that drive NED remuneration, and set out a practical pathway to building toward paid board appointments. By the end, you will have a clear picture of NED pay across company types, understand what influences compensation, and know the concrete steps for building toward remunerated board roles.
Key takeaways
- Non-Executive Director (NED) salaries in the UK range from pro bono for first-time roles to over £300,000 for FTSE 100 board chairs, with the average FTSE 150 NED base fee sitting at £80,888 (Spencer Stuart 2025).
- NED remuneration depends on company size, sector, committee responsibilities, time commitment, and your track record; understanding these factors helps you benchmark realistically.
- Advisory and fractional work builds the governance instinct and boardroom credibility needed for paid NED appointments - skills developed by osmosis through hands-on board-level experience.
- Structured pathways like Connectd's Transition to Portfolio programme offer CPD-accredited learning, mentorship, and pro bono placements that accelerate the transition to remunerated board roles.
What is a Non-Executive Director?
A Non-Executive Director (NED) serves as a board member of a company but is not part of its executive management team. The role excludes involvement in the company's day-to-day operations, focusing instead on providing independent oversight and offering strategic advice and input to the executive team.
Boards appoint NEDs to safeguard shareholders' interests and introduce an independent, constructively critical perspective. NEDs hold a pivotal function in governance, risk management, and financial supervision, contributing significantly to the company's sustained prosperity.
It is worth understanding the distinction between a NED and a Board Advisor. A NED holds a formal directorship with statutory responsibilities and fiduciary duties - they are legally accountable for the company's conduct. A Board Advisor, by contrast, provides strategic guidance without the legal obligations of directorship. Advisory roles are typically more flexible, often serving as a practical stepping stone toward formal NED appointments. Working alongside boards in an advisory or fractional capacity builds governance instinct and commercial judgement by osmosis - the kind of boardroom credibility that positions you well when paid NED opportunities arise.
Learn more: Executive vs Non-Executive Directors
How do NEDs get paid?
NEDs receive annual fees rather than a salary. This is an important distinction: NED remuneration takes the form of a fixed fee for board service, not employment income tied to hours worked. The board's remuneration committee typically reviews fees annually and benchmarks them against companies of similar size and complexity.
On top of the base fee, NEDs who chair or sit on board committees such as those overseeing audit, remuneration or ESG, receive additional fees. According to the Spencer Stuart 2025 UK Board Index, audit committee chairs in FTSE 150 companies earn an average additional fee of £27,649 per year, with audit committee members receiving around £15,788, reflecting the additional time and expertise required.
Equity-based remuneration for NEDs remains uncommon in the UK. Provision 34 of the UK Corporate Governance Code 2024 states that NED remuneration should not include share options or other performance-related elements, on the basis that equity could compromise independence. That said, the landscape is shifting: the Spencer Stuart 2025 UK Board Index found that five FTSE 150 companies now include shares as a component of NED fees, departing from Provision 34 on a comply-or-explain basis. In the startup and scaleup world, equity or blended equity-plus-cash packages are far more common, particularly where businesses lack the cash flow for competitive fee-only arrangements.
For many professionals, a first NED role is likely to be pro bono. Role-specific experience is highly valued, which is why many first-time NEDs accept the trade-off of giving their time and expertise to build the track record needed for remunerated positions. The exception is those who have already built board-level experience through advisory or fractional roles. These professionals bring working knowledge of governance and strategic oversight, which can strengthen their position when negotiating compensation for a first NED appointment.
Since the IR35 tax reform legislation came into force, NEDs are classified as office holders and are subject to PAYE and National Insurance deductions. However, should a NED also provide separate consultancy services to the same company, that portion of income may be treated differently for tax purposes, provided the two engagements are tendered on separate contracts.
How much do Non-Executive Directors earn in the UK?
NED remuneration varies significantly depending on the type and size of organisation. The data below draws on the Spencer Stuart 2025 UK Board Index, Alvarez & Marsal research (December 2025), and other current UK sources to give a realistic picture of what NEDs earn across different contexts.
FTSE 100 and FTSE 250
£80,888 — the average FTSE 150 NED base fee in 2025.
The average NED base fee across the FTSE 150 is £80,888, according to the Spencer Stuart 2025 UK Board Index. At the FTSE SmallCap level, the median NED fee is approximately £55,000. Chair fees are significantly higher — typically around 5.6 times the standard NED fee, reflecting the substantially greater time commitment and accountability involved.
Committee responsibilities add to the total. Audit committee chairs in FTSE 150 companies receive an average additional fee of £27,649 per year, with members receiving around £15,788. Remuneration and ESG committee roles also attract supplementary fees. It is worth noting that FTSE NED fees have lagged behind CPI by 11.8% over the past decade, meaning real-terms pay has declined even as governance expectations have grown.
Private companies
In the private company space, the average NED fee is approximately £15,000 per year, with a range stretching up to £90,000 depending on company size and complexity. Private company chairs earn an average of around £28,000, with fees reaching up to £170,000 in larger or more complex organisations. Board Advisors in private companies typically earn from around £2,000 upwards, depending on the scope and formality of the engagement.
Startups and scaleups
Early-stage businesses are a different proposition. Pre-revenue companies often seek Board Advisors rather than formal NEDs, and compensation frequently takes the form of equity or a blend of equity and cash. While remuneration may not be immediate, the potential for a meaningful return as the company grows is real. For professionals building a board portfolio through Connectd's community, startup and scale-up placements offer hands-on governance experience alongside the commercial upside that equity can deliver.
NHS and public sector
NHS Trust NED roles carry a fixed fee of £13,000 per year. Chair remuneration is banded according to trust size and complexity. Public sector NED fees are generally lower than commercial equivalents, though the governance experience gained can be substantial.
| Organisation type | Average NED fee | Average chair fee |
|---|---|---|
| FTSE 150 | £80,888 | ~5.6x NED fee |
| FTSE SmallCap | £55,000 (median) | ~£180,000 |
| Private company | ~£15,000 (up to £90,000) | ~£28,000 (up to £170,000) |
| Startup / scaleup | Equity or blended | Equity or blended |
| NHS Trust | £13,000 (fixed) | Banded by trust size |
What factors influence NED remuneration?
Understanding what drives NED pay helps you benchmark your own earning potential and make informed decisions about where to focus your board career. Five key factors shape remuneration:
Organisation size and complexity. Larger organisations pay higher NED fees. A FTSE 100 appointment carries a fundamentally different level of accountability compared with a private SME board seat, and fees reflect this.
Sector. Financial services, healthcare, and other heavily regulated sectors command higher NED fees, reflecting more exacting governance demands and the need for specialist expertise.
Time commitment. A standard NED role requires approximately 15 to 25 days per year, encompassing board meetings, preparation, committee work, and ad hoc engagement. Chair roles are significantly more demanding, typically requiring 30 to 50 or more days annually. Higher time commitments naturally attract higher fees.
Committee responsibilities. Chairing a board committee - particularly audit - increases your total remuneration. Remuneration, nomination, and ESG committees also attract additional fees.
Experience and track record. NEDs with a portfolio of roles across multiple organisations command higher fees. First-time NEDs often begin with pro bono appointments, building the track record that supports higher earnings over time.
How to build toward a paid NED role
The path to a well-remunerated NED career is rarely a single leap. The most effective route is to build governance experience, boardroom credibility, and a professional network incrementally - and advisory or fractional work is where much of that foundation is laid.
Start with advisory or fractional work. Working alongside founding teams as a Board Advisor or fractional leader builds the governance instinct, commercial judgement, and strategic perspective that NED roles demand. These are skills developed by osmosis - through real-world exposure to board dynamics, investment decisions, and scaling challenges. Professionals who arrive at their first NED appointment with this kind of hands-on experience are better prepared and better positioned to negotiate compensation.
Follow a structured pathway. Connectd's Transition to Portfolio programme provides a structured route from senior executive experience to board-level roles. The programme combines CPD-accredited learning, experienced mentorship, a pro bono placement with a real business, and access to a global community spanning 80+ skillsets. It is designed to give you the credibility and practical experience that boards look for - without requiring you to navigate the transition alone.
Connectd member Dani Saadu took exactly this route. After completing his pro bono placement through the Transition to Portfolio programme, he secured his first paid NED role. "I wouldn't have secured the paid NED role without the experience I gained," he says. "During the interview process, I was able to showcase everything I'd done - the training, the pro bono work and the insights I'd developed."
Build a portfolio of roles. Multiple board appointments across different organisations and sectors strengthen your profile and increase your earning potential. Each role adds to your governance track record, broadens your network, and deepens the commercial insight you bring to future boards.
Consider search firms at the right stage. Executive search firms can be an effective route for experienced NEDs who have already built a strong portfolio. However, they are typically geared toward seasoned board professionals and can create a cost barrier for earlier-stage talent. Connectd's platform solves this on both sides: connecting experienced talent directly with the organisations that need them, without the cost barrier of traditional search. For those building their first or second board role, a community-led platform offers a more accessible path. Become a Non-Executive Director with Connectd.
Common mistakes when pursuing NED remuneration
Holding out for a paid first role. Many aspiring NEDs delay their board career by waiting for a remunerated appointment before gaining any governance experience. Pro bono placements and advisory roles build the credibility that paid positions require — treating them as wasted time rather than investment slows your progression.
Over-relying on search firms too early. Executive search firms serve experienced NEDs well, but they are rarely the right route for a first or second appointment. Building your profile through a community like Connectd - which spans 60+ countries and 100+ industries - gives you direct access to opportunities that search firms may not surface.
Undervaluing the advisory pathway. Board Advisory and fractional roles are not lesser alternatives to NED work. They build the same governance instincts, commercial judgement, and boardroom confidence - by osmosis, through hands-on experience. Dismissing them as "not real board work" means missing the most effective preparation for paid NED appointments.
Chasing fees over fit. Accepting a role purely for its remuneration, without considering sector alignment, time commitment, or organisational culture, often leads to frustration. The most rewarding NED careers are built on fit, not fees alone.
Looking ahead
The landscape for NED remuneration continues to evolve. Governance demands are growing, and the skills boards need - from digital transformation to ESG oversight - are broadening alongside them. Accountability expectations are rising accordingly. These pressures are creating new opportunities for experienced leaders who bring relevant, current expertise.
At the same time, the way people build board careers is changing. The traditional route through executive retirement and personal networks is giving way to more intentional, structured pathways. Connectd exists at the centre of this shift — building a people-powered ecosystem where startups, scaleups, and experienced talent grow together. The future of board work is more accessible, more diverse, and more impactful than it has ever been.
Frequently asked questions
How much does a first-time NED typically earn?
Many first-time NEDs begin with pro bono roles to build their governance track record. Those who have advisory or fractional experience may be able to negotiate a modest fee from the outset. Paid first appointments in private companies typically start around £10,000 to £15,000 per year.
Are NED fees subject to tax?
Yes. Under IR35 legislation, NEDs are classified as office holders and are subject to PAYE and National Insurance contributions. If a NED also provides separate consultancy services to the same organisation, those may be taxed differently under a separate contract.
Can I hold multiple NED roles?
Yes. Many NEDs build a portfolio across several organisations, which increases both their earning potential and their breadth of governance experience. The key consideration is managing time commitments — listed company boards typically expect full disclosure of other directorships.
What is the difference between a NED and a Board Advisor?
A NED holds a formal legal directorship with statutory responsibilities and fiduciary duties. A Board Advisor provides strategic guidance without the legal obligations of directorship. Advisory roles are often a practical stepping stone toward NED appointments, offering board-level exposure with greater flexibility.
Which committee chair role pays the most?
In most organisations, audit committee chairs receive the highest additional fees, averaging £27,649 per year in FTSE 150 companies (Spencer Stuart 2025). In financial services companies, risk committee chairs can earn more still — averaging £41,494 — reflecting the specialist demands of that role.
How many days per year does a NED role require?
A standard NED role requires approximately 15 to 25 days per year. Chair roles are more demanding, typically requiring 30 to 50 or more days annually, depending on the organisation's size and complexity.
NED remuneration in the UK spans a wide range — from pro bono first appointments to six-figure fees for experienced directors on FTSE boards. Where you sit on that spectrum depends on how strategically you build your governance experience, the sectors you work in, and the breadth of your board portfolio. The evidence is clear: significant earnings are achievable for those who approach their board career with intention and the right support.
Connectd's community helps experienced leaders build the experience, credibility, and connections needed to move into paid NED and Board Advisor roles — with structured pathways, mentorship, and access to opportunities worldwide. Join Connectd and start building your board career today.
