What can directors earn?
A common question we’re asked at Women on Boards is how much can a Non-Executive Director (NED) earn?
From the thousands of board vacancies we’ve posted, we know it varies depending on the type and size of organisation (e.g. not for profit, government or ASX) as well as the industry. We’ll briefly take you through some of these.
Not for Profit Sector
The first band we see are the honorary (unpaid) positions. These are generally for smaller not for profits, associations, committees and some startups. Some will pay expenses (such as flights to meetings), however most will not. For most people, this is where your board pathway starts. However, NED’s with a portfolio career usually have at least one honorary position to ensure they’re working across the full NED landscape and giving back.
Some honorary positions are high level and require significant commitment. To take on these roles you need to be prepared to work hard and have some passion for what you’re doing. For example, many national sporting boards pay expenses and can expose you to fascinating aspects of the sport such as Olympic selections, sanctioning and development of the sport.
WOB research suggest that about 20% of not for profits, committees and smaller organisations pay a fee per meeting / day or an annual retainer. These can range from $250 per meeting or $5,000 –$70,000 per annum. For these types of boards $60,000 is considered economically significant by the ABS.
Government Sector Boards
These vary considerably between national, state and local government roles and whether they’re for a committee or board. We see these types of roles range anywhere from a $250+ per diem rate through to $120,000 pa for NBN Co (Federal Government). A good reference are the Remuneration tribunal websites.
These vary but a typical ASX300 (i.e. a top 300 company on the Australian stock exchange) offers remuneration somehwere in the range of $50,000 - $80,000 pa, ASX200 generally in the range of $90,000 - $130,000 pa and ASX100 from $160,000 - $300,000 pa. This excludes committee work and Chair's fees, which are usually double.
Trustee boards can also pay well, but again vary depending on the size and type of the fund. Our comprehensive 2015 survey
saw remuneration ranging from $20,000 to $250,000 pa.
To learn more
A successful board portfolio can be both personally and financially rewarding, however securing a successful directorship requires a strategic and specific approach and an understanding of the risks involved. WOB is on hand to support your journey in the following ways:
References – Further Reading
Governance Institute Remuneration Report - https://www.governanceinstitute.com.au/membership/why-join/member-benefits/australian-board-and-executive-remuneration-survey-report/
Directors Remuneration across jurisdictions - https://www.womenonboards.net/en-au/impact-media/news/director-remuneration-across-jurisdictions
What to pay a not for profit director - https://www.womenonboards.net/en-au/impact-media/news/what-to-pay-a-not-for-profit-director
WOB yields great dividends - https://www.womenonboards.net/en-au/impact-media/news/wob-yields-great-dividend
A matter of governance - https://www.womenonboards.net/en-au/impact-media/news/a-matter-of-governance