“How much do non-executive directors get paid?” is one of the most common questions aspiring board members ask — and one of the hardest to answer simply, because non-executive pay varies enormously with the type of organisation, its size, the sector, the time commitment and the committee responsibilities involved. A non-executive on a FTSE 100 board and a trustee of a small charity are doing recognisably the same kind of work, yet one may be paid over £80,000 and the other nothing at all. This guide sets out what UK non-executive directors are actually paid across the range of organisations, how committee and chair roles change the picture, how NED pay is taxed, and what the headline figures do and do not tell you. It is a reference resource, updated as new market data is published.
The figures below are drawn from published UK market surveys and are presented as broad market context, not as quotes or guarantees for any individual role. Actual fees are set by each organisation and depend on its specific circumstances. This guide is maintained by Adrian Lawrence FCA, and complements our NED Career Hub and guide to NED career pathways.
How Non-Executive Director Pay Works
The first thing to understand is that non-executive directors are not paid a salary. A salary is compensation for an employee performing an executive or operational role; a non-executive is not an employee and does not run the business. Instead, NEDs receive a fixed annual fee — a retainer — in exchange for a defined time commitment, typically in the region of fifteen to twenty-five days a year for a standard role. The fee does not vary with hours worked: a NED receives the same fee whether the year is quiet or whether a crisis or transaction demands far more time than expected. NEDs do not usually receive bonuses, pensions, share options or other employee benefits, and performance-related pay is deliberately avoided because it would compromise the independence that is the whole point of the role.
NED Fees by Type of Organisation
The single biggest driver of non-executive pay is the type and size of organisation. The table below sets out indicative annual fee ranges for a standard non-executive director role — that is, before any additional committee or chair responsibilities — across the main categories of UK organisation.
| Organisation type | Indicative NED fee range | Typical time commitment |
|---|---|---|
| FTSE 100 | £70,000 – £95,000 | 20–30 days |
| FTSE 250 | £54,000 – £70,000 | 20–30 days |
| FTSE SmallCap | £45,000 – £60,000 | 15–25 days |
| AIM-listed | £40,000 – £60,000 | 15–25 days |
| Investment trusts | £30,000 – £40,000 (avg ~£38,000) | 12–20 days |
| Private / PE-backed | £15,000 – £90,000 (avg ~£15,000–£35,000) | 15–30 days |
| NHS trusts | £13,000 (nationally set) | varies by trust |
| Charities / not-for-profit | Often unpaid or expenses only | varies widely |
Indicative ranges compiled from Alvarez & Marsal (Dec 2025), Spencer Stuart (2025), Trust Associates (2025) and NHS England data. Figures are market context only and vary significantly by company size, sector and role. Many private-company and charity roles are unpaid, particularly first appointments.
Committee and Chair Premiums
Most listed companies — around 95% — pay additional fees on top of the base retainer for committee responsibilities, and these can add materially to a non-executive’s total remuneration. Chairing a committee carries a premium over simple membership, reflecting the greater responsibility and time the chair role demands, particularly during a shareholder consultation, an audit, or the appointment of a new executive.
| Additional role | Typical additional fee |
|---|---|
| Audit Committee Chair | £10,000 – £11,500 |
| Remuneration Committee Chair | £10,000 – £11,500 |
| Risk Committee Chair (FS firms) | £10,000+ (sector-dependent) |
| ESG / Sustainability Committee Chair | Increasingly common; varies |
| Senior Independent Director | £5,000 – £20,000+ (avg ~£22,000 in larger firms) |
| Committee membership (non-chair) | Typically lower, where paid |
Additional-fee figures from Alvarez & Marsal (Dec 2025) and Spencer Stuart (2025). Committee-chair premiums are less common in the SmallCap market, where they are typically around £5,000 when offered. The audit and remuneration committee chair roles carry the heaviest additional burden.
The audit committee chair and remuneration committee chair are the two most consistently rewarded committee roles, reflecting their responsibility and exposure. We cover these appointments in detail on our audit committee chair recruitment and remuneration committee chair recruitment pages.
Board Chair Remuneration
The board chair is paid far more than a non-executive director, reflecting a step change in responsibility, time and accountability. Chairs typically commit thirty to fifty days a year or more — in the largest companies, the equivalent of two to three days a week — and lead board effectiveness, chief-executive succession and the board’s external relationships. Chair fees range from around £28,000 in smaller private companies to £350,000 or more in the FTSE 100, with FTSE 250 chairs typically in the £190,000–£290,000 range and SmallCap chairs commonly £130,000–£200,000. We cover the chair appointment on our non-executive chair recruitment page.
How NED Fees Are Taxed
One aspect that surprises many first-time non-executives is the tax treatment. Although NEDs are not employees in the ordinary sense, HMRC generally regards a UK non-executive director as an office-holder, which means the organisation must normally deduct income tax and National Insurance through PAYE, rather than the NED invoicing for their fees as a self-employed contractor. This applies even where the NED holds the role through a personal service company. There are limited exceptions and the position can be nuanced, so any non-executive should confirm the treatment of their specific fees — this guide is general information, not tax advice, and NED Capital is not a tax adviser.
What the Headline Figures Do Not Tell You
It is easy to look at a FTSE NED fee and conclude the role is generously paid for a few days a month. The reality is more complicated. First, the fee is fixed while the time is not: when a company hits a crisis, a transaction or a regulatory problem, the non-executive’s hours can rise sharply with no change in pay, and in demanding years the effective hourly rate falls considerably. Second, the role carries real personal liability — a non-executive is a director in law under the Companies Act 2006, with the same duties and the same exposure as an executive, as set out in our guide to NED responsibilities and legal duties. Third, market analysis has found that FTSE 100 NED fees have fallen by roughly 11.8% in real terms against inflation over the past decade, even as responsibility and time commitment have grown — so the headline figures overstate how well the role is rewarded relative to its demands. And fourth, for most people the first non-executive role is unpaid: charity trusteeships and early advisory positions are how aspiring directors build the track record that leads to paid appointments later.
Should You Choose a NED Role for the Money?
The honest answer, and the one experienced non-executives give consistently, is no. Non-executive work can be well paid at the top of the market, but it is not a fast or reliable route to wealth, the pay does not flex with the effort, and the responsibility is carried year-round. The better reasons to pursue a board career are the influence, the intellectual challenge, the professional development and the flexibility of a portfolio — with fair reward as a consequence rather than the goal. Aspiring directors are far better served focusing first on building governance experience and board-readiness than on chasing fees, a theme we develop in our NED Career Hub and guide to what boards look for in first-time NEDs.
About the Author
This guide is maintained by Adrian Lawrence FCA, founder of NED Capital and a Fellow of the ICAEW with over 25 years working with boards, investors and business owners across the UK. Adrian holds an ICAEW practising certificate and read for a BSc at Queen Mary College, University of London. Adrian maintains this guide from direct experience of the UK board-search market, drawing on published fee surveys and on NED Capital’s own work placing non-executives across listed, private, PE-backed, regulated and charity boards. He is clear with candidates that non-executive pay should be understood in the round: the headline fee, the fixed nature of it against variable time, the personal liability, and the reality that most board careers begin with unpaid roles. The figures here are offered as honest market context to help boards benchmark and candidates set expectations — not as a promise of what any particular role will pay.
“NED Capital understood exactly the balance of financial credibility and independent judgement we needed at board level. Adrian led the search personally, and the director we appointed has strengthened our governance from the first meeting.”
Tracey Rees — COO, SBS Insurance Services Ltd
Related Resources
NED Career Pathways
How board roles and reward differ across SME, PE, listed and charity boards.
Audit Committee Chair Recruitment
The committee-chair role that most consistently attracts an additional fee.
Benchmarking Board Fees or Planning an Appointment?
Whether you are a board setting non-executive fees or a candidate weighing a role, we are glad to share market perspective drawn from live search work. Every conversation is confidential and led personally by Adrian Lawrence FCA.
This guide is general market information, not remuneration or tax advice. Fee ranges are indicative, drawn from published UK surveys including Alvarez & Marsal, Spencer Stuart, Trust Associates and NHS England, and are updated periodically. Actual fees vary by organisation. Last reviewed 2026.
NED Capital | Sister practice of FD Capital | ICAEW practising certificate held by Adrian Lawrence FCA.
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