What the seat is for
- Governance: the board's duty, not the executive's convenience.
- Challenge: the independent voice on strategy, risk and the chief executive's own performance.
- Specific expertise the board lacks, most often audit, remuneration or a sector.
- Access, which is real but should never be the primary reason.
What it pays in the UK
| Company type | Typical annual fee | Time |
|---|---|---|
| Early-stage private | Often equity only, or £15k to £25k | 10 to 15 days a year |
| Scale-up, VC or PE backed | £30k to £50k | 15 to 25 days |
| Listed, small cap | £45k to £70k | 20 to 30 days |
| Committee chair | Premium of £10k to £20k | Plus committee time |
How the search differs
Fees are usually a fixed project fee rather than a percentage, because a percentage of a £40,000 non-executive fee funds nothing. Expect a flat fee in the low tens of thousands for a properly run board search.
The pool is different too. The best non-executive candidates are rarely looking and are frequently found through the board's own network, which is why a firm's genuine value here is challenge to your longlist rather than reach.
What to check before appointing
- Time. A NED holding five boards is not giving yours twenty-five days.
- Independence. Investors and paid advisers are not independent, whatever the title says.
- Conflicts, across every other board they sit on.
- Term. Three years, renewable once, is the convention for a reason.
Questions
- How much does a non-executive director cost in the UK?
- £30,000 to £50,000 a year for a scale-up, £45,000 to £70,000 for a small-cap listed company, and often equity alone at early stage. Committee chairs carry a premium.
- How are board search fees charged?
- Usually a fixed project fee rather than a percentage, because a percentage of a non-executive fee would not fund the work.