Welcome to the Channel Island Non-executive Director (‘NED’) remuneration survey for 2015. This review has been conducted by PricewaterhouseCoopers CI LLP (PwC) in conjunction with the Guernsey and Jersey branch of the Institute of Directors (IoD).
We are delighted by the number of NEDs who chose to participate in this survey. 89 NEDs contributed to data covering a total of 1,646 directorships and provided detailed remuneration data on 441 board positions of ‘Significant Entities’. Furthermore, to improve the analysis of the data, we have captured the location of the participants so we can set out any observable differences between Guernsey and Jersey. We would also like to take this opportunity to thank Anne Ewing and Charles Clarke for their assistance in drafting and coordinating the survey.
This review follows our July 2011 NED survey which covered a wider remit, but did touch on remuneration. This year we dive deeper into the hot topics of not only NED remuneration, but also time commitments, years of experience, number of appointments, ‘skin in the game’ and much more.
The July 2011 survey found that the financial crisis had dramatically increased NEDs’ expectations of time spent on each appointment, driven by heightened risk and the inevitable regulatory changes combined with greater business challenges. At that time 61% of NEDs considered their fees to be adequate with 30% saying their fees were too low. It would appear from this measure alone, that fees have somewhat adjusted post financial crisis. Now 75% of NEDs consider their fees to be ‘about right’ and 24% are saying their fees are ‘too low’.
Looking ahead, we predict more of the same steady change for most entities as they continue to operate within the constraints of their remuneration policies. However, the increased responsibility imposed on NEDs by global regulations, particularly impacting the Channel Islands’ financial sector, may lead to higher fees to attract and retain individuals to take on what is becoming a very challenging role.
Breakfast briefings, held in both Guernsey and Jersey, where attended by a large audience of Non-executive Directors. Chairing the event were survey authors, Alex Burne and Paul Silcock. The panel in both islands included local representatives of the Non-executive Director community and the Institute of Directors.
As well as presenting the results of the survey, a number of questions were addressed to the panel of experts.
Key topics of interest that were discussed and debated were:
Finally, this review would not have been possible without the time of the 89 participants. We thank all those who participated in the survey and continue to welcome any feedback you may have on the survey process. We hope you find this report useful when reviewing your own board practices. For further information on this survey and PwC’s NED programme, please contact do not hesitate to contact Alex Burne or Paul Silcock or your normal PwC Channel Island contact.