The role of a NED is increasingly challenging – with shareholder activism, executive pay, loss of trust, rapid technological advances and growing regulatory requirements all adding to the NED burden. Board roles are being played out in an enhanced media spotlight adding to both the pressures of the role and the reputational risk. At the same time, companies are having to look beyond traditional markets for growth which means that strategy is being set, and decisions being taken by the Board, in areas with which they may be less familiar.
Our NED programme aims to support NEDs via a series of briefings, workshops and other one-off events to help address the need to keep up to date with Board issues and to assist directors to respond to the challenges they face. It combines the provision of expert knowledge with the invaluable sharing of experiences and ideas with peers.
In the Summer of 2022, we released the results of our Non-Executive Directors Remuneration Survey for 2021/ 2022, based on data gathered in the Winter months of 2021. Please download our full report below which includes detailed graphs and a deeper analysis of key trends.
Compare the results highlights for 2021, 2018 and 2015 below.
| 2015 | 2018 | 2021 | |
|---|---|---|---|
| No. of respondents | 89 | 111 | 120 |
| % of respondents that are female | 10% | 19% | 23% |
| No of significant entities | 441 | 347 | 198 |
| No. of directorships | 1646 | 1750 | 1525 |
| Ratio between no. of respondents from Guensey to Jersey | 1:1 | 1:1 | 1:1.4 |
| 2015 | 2018 | 2021 | |
|---|---|---|---|
| Average day rate per entity | £1,775 | £1,726 | £1,609 |
| Average days worked per entity | 17 | 18 | 26 |
| Average fee per entity | £30,000 | £31,219 | £42,444 |
| Average day rate per Listed Entity | £1,380 | £1,554 | £1,540 |
| Average days worked per Listed Entity | 27 | 25 | 28 |
| Average fee for a listed position | £37,400 | £38,540 | £43,760 |
| Average day rate per Unlisted Entity | £1,486 | £1,487 | £1,472 |
| Average days worked per Unlisted Entity | 15 | 14 | 23 |
| Average fee for a unlisted position | £21,700 | £21,119 | £34,450 |
| NEDS believe the median fee for a listed position is | £30,000 | £40,000 | £45,000 |
| Majority believe remuneration levels are | about right' | about right' | about right' |
| % on a fixed fee basis | 87% | 83% | 81% |
| % with no review policy | 41% | 47% | 46% |
| 2018 | 2021 | |
|---|---|---|
| Men's day rates | £2,175 | £2,081 |
| Women's day rates | £1,253 | £1,326 |
| Difference | 42.39% | 36.28% |
As a tool for aspiring NEDs, we have developed 'The Test', a due diligence process to assist prospective NEDs in deciding whether to accept a new NED position. To obtain a copy of this tool, please contact Liz Smith.
Contact usFor female aspiring NEDs, we are sponsors of the Professional Boards Forum and Women on Boards and would be happy to provide information on their activities - contact Liz Smith.
Contact usThe PwC Audit Committee Network supports audit committee chairs and members in an ever changing market landscape.
Read moreTwice a year we run an aspiring NED master class in conjunction with Cass Business School and other third parties, including experienced NEDs and a headhunter. The morning explores all aspects of the NED role including legal responsibilities, the Board hierarchy, how NEDs input to strategy and their role in relation to governance and risk. The afternoon focuses on how to get a first NED appointment including what Boards and headhunters are looking for, the NED CV and the due diligence that should be undertaken before joining a Board. Linking the two is an experienced NED guest speaker over lunch to "tell it as it is in practice".
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