Non-Executive Director Salary and Compensation: What to Expect
Non-executive director salary is one of the most searched questions among experienced executives considering board roles — and one of the least transparently answered. The reality is that NED compensation varies enormously depending on company size, sector, geography, and whether the role is at a listed company, a funded startup, or a private SME. This guide breaks down what you can realistically expect and how the structures work.
What does a non-executive director actually earn?
At large listed companies, NED fees are publicly disclosed and can range from £40,000 to over £100,000 per year in the UK, with US board fees at comparable public companies often higher. For FTSE 100 companies, the median NED fee sits around £70,000–£80,000. Committee chairs — audit, remuneration, risk — typically receive an additional £10,000–£20,000 on top of the base fee.
At private companies and growth-stage businesses, the picture is different. Many privately held businesses pay NEDs in the range of £20,000–£50,000 per year, depending on time commitment and the board's maturity. Some smaller companies pay nothing at all, offering equity instead.
For startups and scaleups, cash fees are less common at early stages. Pre-Series A companies rarely offer a cash retainer to advisors or NEDs. Post-Series A and beyond, a mix of a modest cash retainer and equity is more typical. Revenue share arrangements also appear in sales-focused roles where an advisor is directly tied to growth outcomes.
How is NED compensation structured?
There are three primary models:
Cash retainer: A fixed annual fee, paid quarterly or monthly. Most common at established private companies and all listed companies. The retainer reflects expected time commitment, typically 15–25 days per year for a standard NED role.
Equity: Options or shares granted at or near appointment. Standard equity grants for startup NEDs and advisors range from 0.1% to 0.5% of the company, vesting over two to three years. Some early-stage companies offer equity as the only form of compensation, which works if the company is genuinely high-growth and the NED believes in the trajectory.
Revenue share: Less common but increasingly used for commercially focused advisory roles, particularly in sales, partnerships, and market entry. The NED or advisor earns a percentage of revenue directly attributable to their work. This model aligns incentives tightly but requires clear attribution — it works best when the advisor's contribution is measurable.
Hybrid models combining a smaller cash retainer with equity are common at Series A to Series C companies. The logic: the company conserves cash while giving the NED meaningful upside if the company grows.
What affects the rate?
Several factors push NED compensation up or down:
Company stage and size: Listed companies pay the most. Mid-market private companies are next. Early-stage startups typically offer equity-heavy or purely equity arrangements.
Sector: Financial services and life sciences boards tend to pay at the higher end. Tech startups vary widely. Nonprofit boards rarely offer meaningful fees.
Geography: UK and US boards pay more than their European counterparts as a general rule, though this varies significantly by company. Nordic boards at scale-up stage are often equity-led with modest cash components.
Committee responsibilities: Chairing the audit committee at a regulated company is more demanding than a general NED seat, and is priced accordingly.
Time commitment: The standard NED role assumes roughly four board meetings per year plus preparation time. More intensive mandates — board observer roles with founder involvement, interim NED positions, turnaround situations — command higher fees.
What should you expect at startup and scaleup boards?
This is where most executives exploring NED roles first land. At Boardio, where over 12,000 advisors and board members are active across 120 countries, the most common compensation structure at funded startups is equity in the range of 0.1% to 0.25%, vesting monthly over two to four years, combined with a small cash retainer of €500–€2,000 per month once the company reaches Series A or equivalent revenue.
Pre-revenue or pre-funding companies asking for NED involvement should be offering equity at the higher end of the range, and the equity should be genuinely meaningful — not a token grant with a four-year cliff and no acceleration provision.
One clear signal that a company is serious about a NED appointment: they have a written advisory agreement in place from the start. Ambiguity about fees, equity, or scope early in the relationship tends to compound over time.
How to benchmark your rate
The most reliable benchmarking data for listed company NED fees comes from annual board remuneration reports published by companies and from consultancies like Spencer Stuart, Korn Ferry, and Egon Zehnder, which release annual board compensation surveys.
For more detail on how cash, equity, and revenue share are typically split across different company stages, see our guide on whether advisory board members get paid. If you're earlier in the process and still deciding where to look for board roles, our guide on how to find advisory board positions covers where these opportunities tend to surface.
For private company and startup roles, benchmarks are harder to find. The best approach is direct comparison: look at what similar companies at similar stages in your sector have disclosed, speak to peers who hold comparable roles, and factor in the specific time commitment, risk, and value you bring.
If you are evaluating a board opportunity and the compensation offer seems low, it is worth raising the question directly. Most founders and CEOs who are serious about building a functional board understand that experienced NEDs have market rates, and the negotiation is normal.
Boardio is an advisor and board member matchmaking platform connecting startups and scaleups with experienced advisors across 120 countries. Executives looking for board and advisory roles can register and apply to active company searches at /advisors.
If you are an experienced executive exploring NED and advisory board positions, register on Boardio to see active searches from companies across Europe, North America, and beyond.
Frequently asked questions
At FTSE 100 companies, the median NED fee is around £70,000–£80,000 per year. At private mid-market companies, fees typically range from £20,000 to £50,000. Early-stage startups often compensate NEDs with equity rather than cash, sometimes combined with a modest monthly retainer once the company reaches Series A.
Most startup NED and advisory roles are equity-led, particularly pre-funding. A typical equity grant ranges from 0.1% to 0.5%, vesting over two to four years. Post-Series A companies often add a cash retainer alongside equity. Revenue share is also used for commercially focused roles where the NED's contribution to growth is directly measurable.
A standard range is 0.1% to 0.5% of the company, depending on stage, time commitment, and the seniority and relevance of the NED. Earlier-stage companies with higher risk and no cash component should offer toward the higher end of this range. Equity should vest monthly or quarterly, not on a four-year cliff.
Boardio is a matchmaking platform where startups and scaleups post active board and advisory searches. Executives can register free, set their areas of expertise, and apply to searches that match their background. The platform covers companies across 120 countries, with strong activity in Europe and North America.
