Non-executive director fees in the UK
A non-executive director in the UK is paid a fixed annual fee, not a salary. The published surveys put it at an average of £76,868 across the largest listed companies, a median of £58,000 on the AIM 100, around £40,500 at smaller quoted companies, and well below that in private companies, where fees commonly sit in the low tens of thousands or are paid partly in equity.
The published figures, by tier
The numbers below come from the named surveys and are reproduced as published. They are base fees for an ordinary NED; committee roles and chair roles add to them.
| Company tier | Base fee | Source |
|---|---|---|
| The 150 largest companies with a premium London listing | £76,868 average | Spencer Stuart UK Board Index 2023 |
| The 100 largest companies on AIM | £58,000 median | BDO AIM 100 remuneration report 2025 |
| Small and mid-sized quoted companies | £40,500 average | QCA non-executive director survey 2022 |
| Private companies, owner-managed and investor-backed | No published survey; see below | Market practice |
What committee and chair roles add
In the largest listed companies the Spencer Stuart UK Board Index 2023 reported an average additional fee of £26,260 for chairing the audit committee, £24,316 for chairing remuneration, and £15,824 for sitting on audit as a member. The senior independent director usually carries a supplement too. The board chair is a different job with a different fee, several times an ordinary NED's, and is not covered here.
Private companies, where there is no survey
No published survey covers private company NED fees properly, and anybody quoting a precise average for them is guessing. What the market does is reasonably consistent even so. An owner-managed or investor-backed company with revenue in the single-digit millions typically pays a NED a fee in the low tens of thousands a year for one to two days a month, with the figure rising with the size of the company, the regulatory load and the committee work. A regulated firm pays more because the personal exposure is larger.
Early-stage companies often pay little or no cash and offer options instead, which is a reasonable arrangement for a NED who believes in the company and a poor one for a NED who needs the fee. Whatever the mix, the letter of appointment should state the days expected, because a fee with no days attached is the arrangement most likely to end badly for both sides.
How the fee is paid and taxed
A directorship is an office, so HMRC normally expects the fee to go through the company's payroll with PAYE and National Insurance deducted, even though the NED is not an employee. Invoicing through a personal company is possible in narrow circumstances and is the exception rather than the rule. Expenses are reimbursed separately. The company should also carry directors' and officers' insurance that covers the NED, and a NED who is not shown the policy before accepting should ask why.
Fee against a fractional executive's day rate
The two are priced on different bases and buy different things. A NED's fee buys governance: a day or two a month of oversight and the legal accountability that goes with a board seat. A fractional executive's day rate buys somebody running a function one to three days a week. A company that wants a seasoned finance person to actually produce the forecast and sit with the bank is buying the second, and the day-rates page shows what that costs by seat.
Common questions
How much does a non-executive director earn in the UK?
It depends almost entirely on the size of the company. The Spencer Stuart UK Board Index 2023 put the average base fee at £76,868 across the largest listed companies; the BDO AIM 100 remuneration report 2025 put the AIM 100 median at £58,000; smaller quoted companies averaged around £40,500 in the QCA non-executive director survey 2022; private companies pay less again, commonly in the low tens of thousands, and early-stage companies often pay in options.
Is a NED fee a salary?
No. It is a fixed annual fee set out in a letter of appointment, usually paid monthly or quarterly through payroll with tax deducted. There is no bonus, no pension and no employment rights attached, and listed companies are expected not to pay NEDs in performance-related share schemes, because it compromises independence.
How many days a year does a NED work for the fee?
Listed boards commonly state twenty five to thirty five days a year for an ordinary NED, more for a committee chair or the senior independent director. In a private company one to two days a month is typical. Both figures stretch badly in a crisis, a transaction or a chief executive change, and the fee does not usually move with them.
Do startups pay non-executive directors?
Often in options rather than cash, sometimes a modest fee plus options, and occasionally nothing at all for a NED who is also an investor. A seed-stage company paying a market cash fee for an independent NED is unusual. What matters more than the number is that the days expected are written down.
Are NED fees going up?
Slowly. The large-company surveys show single-digit annual increases, and the Financial Times reported in December 2025 that FTSE 100 non-executive fees had trailed inflation over the previous decade. Korn Ferry's 2026 survey of UK and Irish NEDs found most believed fees did not reflect the time and accountability required, which is the usual view from the other side of the table.
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More on non-executive directors
A board needs governing. A function needs running.
A non-executive director does the first. For the second, the bench lists verified fractional executives with the day rate on the profile, and retained search runs board and full-time appointments for the companies it works with.