Non Executive Director Salary: Advertised Fees vs Take-Home Pay in the UK

Understanding the non executive director salary landscape

When you search for a non executive director salary in the UK, you will find figures ranging from a few thousand pounds to nearly six figures. But unlike a typical employee role, a non-executive director (NED) is not paid an hourly wage or a salary in the conventional sense. NEDs receive a fixed annual fee – a retainer – for a set number of days per year. They are not covered by the National Living Wage or National Minimum Wage because they are not employees. This distinction is crucial when comparing advertised fees with what you actually take home.

How advertised fees differ from take-home pay

The fee you see advertised – for example, £70,000 for a FTSE 100 NED role – is the gross amount before tax and National Insurance. Because NEDs often have other income (from executive roles, pensions, or investments), their marginal tax rate can be high. The take-home pay from a NED fee will therefore depend on your total income and tax code. Unlike employees, NEDs may need to handle their own tax through self-assessment if the fee is not processed via PAYE. Always check the contract terms.

Moreover, the advertised fee is for a defined time commitment – typically 20–30 days per year for a large listed company. If a crisis or major transaction arises, the actual hours can double with no extra pay. The Korn Ferry 2026 NED Pay Report found that 80% of NEDs say time commitment has increased over the past five years, and 95% believe fees do not reflect the time and accountability required. So the effective hourly rate can be much lower than it first appears.

Regional and sector variations

Non-executive director pay varies significantly by region and sector. Data from Check-a-Salary (based on 67 responses) shows average NED salaries from £4,129.92 in the South East to £50,407.20 in the West Midlands, though these figures come from a small sample and should be treated as indicative only. The NED Capital guide, drawing on Alvarez & Marsal and Spencer Stuart surveys, provides more reliable ranges:

• FTSE 100: £70,000–£95,000 base fee, 20–30 days per year
• 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 (average ~£38,000), 12–20 days
• Private / PE-backed: £15,000–£90,000 (average £15,000–£35,000), 15–30 days
• NHS trusts: £13,000 (nationally set)
• Charities / not-for-profit: Often unpaid or expenses only

Additional fees for committee chairs add £10,000–£11,500 for audit or remuneration committee roles. The Senior Independent Director role can add £5,000–£20,000+ in larger firms.

What this means for job seekers

If you are considering a non-executive director role, look beyond the headline fee. Consider the time commitment, the potential for unpaid extra hours, the personal liability (directors have duties under the Companies Act 2006), and your own tax situation. Many first NED roles are unpaid – charity trusteeships are a common way to build a track record. Use resources like our pay guides and pay data to benchmark fees, and always check the UK Minimum Wage rates for comparison with employee roles, though NEDs are not covered by them.

The bottom line

The non executive director salary is not a salary in the traditional sense. It is a fee for a part-time governance role with significant responsibility. Advertised figures are gross, and take-home pay depends on your personal tax position. The role can be rewarding financially and professionally, but the effective hourly rate may be lower than expected, especially when time demands rise. Always read the fine print and consider the total package, including any committee fees and expenses.

For more insights, explore our topics on director pay and board roles, or read about how minimum wage rates apply to different working arrangements.