Here we give a high-level overview of non-executive opportunities and how they differ between sectors. We hope this will help you to position yourself to find a role with boards that best suit you.

What’s a board? Almost all constituted organisations have a body overseeing their operations and finances. These boards have overall responsibility for the organisation, guiding the strategy and managing risk. They provide governance to ensure the organisation meets all relevant legal and regulatory requirements. Increasingly, boards are also addressing culture and quality of operations.

Boards are often a combination of executive members (senior employees of the organisation) and non-executives. Non-executive members are there to advise and steer but do not ‘do’ the work of running the organisation themselves. This guide relates to the requirements and challenges of becoming a non-executive board member.

Time commitment | Location | Remuneration |  Experience required | Competition | Recruitment Methods  | Risk & Responsibility | Sector guide

Time commitment

Taking leave – There are not usually formal leave arrangements for non-executive directors, e.g., maternity or sickness leave, as they are not employees. Most boards would expect you to schedule holidays around your board commitments, which are normally set well in advance for this reason.

If you need to take time away from your board duties, you should seek an informal arrangement with the Chair to miss a limited number of meetings, join remotely or make other flexible arrangements. However, you should be mindful that your fiduciary duties and legal responsibilities are still likely to apply whilst you remain a board member.

Many non-executives can and do continue in their roles during maternity leave periods, as the time commitment is limited and flexible. Read Neelu Agarwal’s story about joining a board during her maternity leave, or Lisa Tennant, who found a portfolio career that gave her the flexibility she needed around family caring and maternity periods. Ultimately, if you want or need a total break from involvement with the board for a longer period, you may need to consider stepping down.

Location

Most boards do not have a restriction on their non-executives’ location, provided you have the requisite understanding of the territory and markets they operate in. However, local knowledge and networks are advantageous in competing for a board role, so you may find it harder to secure a position outside your area. Some public sector boards and housing associations do require NEDs for certain positions to be resident in a particular geographical area to represent the communities they serve – this is normally made clear in the recruitment pack.

However, you should consider travel time and cost to attend physical board meetings, which may prove to be a practical barrier. More boards are moving to virtual meetings, making attendance easier wherever you are, but this will vary significantly between organisations. For remunerated positions, you may need to clarify your tax position if being paid from another territory to where you are domiciled.

If you are interested in becoming a non-executive of an organisation operating outside the area you are based in, Women on Boards recommends contacting the organisation prior to your application to confirm if there are any practical or other barriers to your application.

Remuneration

Non-executive pay varies significantly between sectors and even organisations within a sector. Charity Commission regulations usually prevent charity board members (known as trustees) from receiving payment (beyond expenses). Public sector bodies vary in terms of whether they pay by sector; for example, health boards are remunerated, but university boards are not. In the private sector, payments can be sizeable, especially in larger and listed firms, although expect it to be below the level paid to executives. Some start-ups will look for ‘investor NEDs’ who contribute funding as well as expertise in return for equity in the company.

From a practical perspective, it is likely that remunerated non-executives will be paid through the organisation’s payroll. HMRC’s starting point is that NEDs should be treated in the same way as executive directors for PAYE purposes. However, it is possible to pay NEDs as consultants, so worth querying when you are appointed.

See advice from our members on transitioning to a portfolio career, which includes tips on considering your financial requirements.

Experience required

There is a board role out there for almost every level and type of experience and expertise. A ‘rule of thumb’ is that your expertise normally needs to be more senior and/or large-scale in your specialist field than the organisation you are supporting. For example, an early-career HR professional may be highly valued on the board of a small organisation with no dedicated HR team, whilst a listed company will require its board members to have executive leadership experience in an organisation of similar size and complexity, which you are unlikely to attain until later in your career.

When appointing a NED, an organisation is looking for someone who has the strength of character and independence of mind to challenge the executive where necessary but also someone who, in a broad sense, adds value. This value can come in many forms, including a useful contact network and the wisdom that comes with experience – people who have “been there before” and know what typically works and doesn’t work. For this reason, the average age of corporate board members is pretty high, although less so in industries like tech, where the average age of executive leaders is younger.

“Building experience on smaller boards as early as possible in your career can help you position yourself later for the more competitive roles.”

However, the not-for-profit and public sector do also look for board members who are representative of their “customer base”, local community or have personal experience of the issues they are dealing with. Examples of this may be school governing bodies, NHS board ‘lay’ members and small/medium charities. Being on any of these sorts of boards is not only stimulating and rewarding; it can be a good first stepping stone towards selection for other boards.

Non-executive experience required: The ‘experience trap’ is still an issue, with many organisations requiring their NEDs to have had prior board experience. However, this is breaking down with increasing numbers of organisations recognising the value of bringing in fresh thinking and diverse expertise when the board is otherwise strong on governance.

Building experience on smaller boards as early as possible in your career can help you position yourself later for more competitive roles. Equally, sitting on your company’s internal committees or steering groups can prove strong ‘proxy board’ experience – strategic oversight, collegiate working and consensus-led decision-making are all involved just as they are on organisational boards.

Our Board CV support specifically addresses how to position yourself as ‘board ready’ even if you have not held a board position before.

Competition

Competition for board roles is generally high in the non-executive space and is becoming increasingly so. Larger organisations and/or those with high brand recognition are normally the most competitive, whether they are paid or not. For example, universities and (inter)national charities are often just as competitive as private sector companies, even though they offer no remuneration. Indeed, many experienced NEDs will hold roles in a range of sectors, paid and unpaid.

Unsurprisingly, the remunerated board roles tend to be more competitive than those of a similar-sized organisation that does not offer payment. However, every organisation will be discerning about who they appoint as a board member – you will have significant influence over the organisation, after all. The key to success is identifying the type of board that values your experience and aligns with your ethos and interests and then presenting yourself effectively as a credible candidate.

Networking and building relationships with non-executive headhunters can help you gauge where you are realistically likely to succeed in getting a role. You may also find it useful to research the current board members. Dedication and persistence are normally required to build a full NED portfolio, particularly getting that first, or first remunerated, role.

Recruitment methods

Network-based recruitment is still by far the most common avenue in the non-executive space. This is particularly true in the private sector. Even where headhunters are involved, many non-executives first hear about board opportunities through their networks. Having contacts in your target organisation’s network to recommend you is also extremely helpful, however you hear about the role. In short, whatever your experience level, investing time in building your network is wise.

Specialist non-executive headhunters play an important role, particularly in the more competitive roles (in all sectors). Building relationships with headhunters who work in your field of interest is extremely useful. Headhunters source candidates from their own network but increasingly (although still not usually) advertise roles to bring in new and different candidates. See our Headhunters resources.

Open advertising is usually required in the public sector – with or without support from a headhunter. Private sector companies tend to use headhunters more often, and roles can be recruited fairly swiftly. Charities may advertise, particularly the larger well-known ones or when seeking a Chair appointment. Some smaller, local charities may welcome a ‘cold’ application from well-qualified potential trustees.

Women on Boards supports all types of organisations in recruiting non-executives, including through our Vacancy Board, which advertises around 200 roles a month. Find out more about finding a role with us here.

Risk & responsibility

As a board member, you take on a collective responsibility for the organisation as a whole. Clearly, you cannot (and should not) oversee every aspect of operations, but you should be confident that you (and your fellow board members) are taking reasonable steps to scrutinise and steer what is happening. It is also prudent to keep records (such as your meeting notes and/or email exchanges) in case you are ever called on to demonstrate you have been an active and engaged board member.

If things ‘go wrong’, board members may have a financial liability, especially if they are found to be negligent. Directors’ Liability insurance mitigates this by limiting your personal liability in case of insolvency or other financial crisis. Many organisations have a collective insurance policy for their directors, which you can ask about during the appointment process. Some non-executives may choose to take out a personal policy instead or in addition to this. More on Directors’ Liability Insurance.

Do remember that insurance can only mitigate against financial risk, and your professional reputation is linked to the performance of the boards you sit on. If you have concerns about impropriety within the board or wider organisation, you should raise them with the Chair, SID, or other board members. Ultimately, if you can not resolve the situation, you may need to step down to distance yourself from an organisation you would not want your reputation to be judged on.

Sector

Every organisation is different and there can be significant variation within sectors, particularly between different sized organisations. Below is a very general guide to the requirements of boards in different sectors.

Note on time commitment: This is given in days but is usually spread out (rather than a full day at a time). It is an estimate and includes both formal meetings and informal contact/reading papers etc. Time requirements can vary considerably month-to-month, depending on where you are in the annual reporting cycle and/or projects you may be involved in (e.g., if you are one of the board members involved in recruiting a new CEO, you may need to give more time during the selection and induction process).

Note on remuneration: We have offered very rough estimates of remuneration rates. However, different organisations will pay at different levels based on size, complexity, performance and culture, so they may fall outside these ranges. Additional payments are often (not always) made for taking on other responsibilities, such as committee membership and chairing.

Listed and large company boards
Time commitment: 2-5 days per month
Remuneration: From £10-20k to £40-80k annually
Experience: Senior executive leadership in a similarly large, complex organisation; Prior board experience almost always required.
Competition: High
Recruitment methods: Headhunters.

Start-up and smaller company boards
Time commitment: Can be more ‘hands-on’ than traditional non-executive roles (often can be more of a mentor or advisor role), especially in times of crisis or fast growth.
Remuneration: Varies in line with business size/performance – some require ‘investor NEDs’ who provide funds, as well as expertise, in exchange for equity in the business.
Experience: Senior executive leadership in a similar organisation or investor; Prior board experience highly desirable.
Competition: High
Recruitment methods: Network; Headhunters.

Public bodies boards
Time commitment: 1-4 days per month
Remuneration: Varies significantly: Some do not pay; those that do can range from £3k – £18k annually, typically paid as a daily rate between £250-£400
Experience: Senior executive leadership in a complex organisation; Prior board experience often required.
Competition: Medium/high
Recruitment methods: Open advertisements managed by the Cabinet Office Public Appointments team; some also use headhunters. Many appointments require Ministerial approval, which can mean a lengthy process before any appointment is confirmed.

NHS boards
Time commitment: 1-4 days per month
Remuneration: £13k annually by 2022 (national agreement to standardise pay: though Wales & Scotland are not bound by this)
Experience: Senior executive leadership in a complex organisation; Prior board experience not always required.
Competition: Medium/high
Recruitment methods: Open advertisements; some also use headhunters.

NB: Some NHS bodies have a geographic restriction as they may require their NEDs to be from ‘the community they serve’.

Education boards: Universities
Time commitment: 1-2 days a month
Remuneration: None (as they are constituted as charities)
Experience: Senior executive leadership in a similarly large, complex organisation; Prior board experience often required.
Competition: Medium/high
Recruitment methods: Headhunters; open advertisements

Education boards: schools and multi-academy trusts 
Time commitment: 0.5 – 2 days a month (depending on size of organisation)
Remuneration: None
Experience: Specialist expertise in a relevant area; Prior board experience not necessarily required.
NB: Multi-academy trusts, rather than individual schools, may require a higher experience level, given their size & complexity.
Competition: Medium/low
Recruitment methods: Open advertisements; networks.

Housing Associations 
Time commitment: 0.5 – 2 days per month
Remuneration: Varies significantly, often (not always) reflecting the size of organisation. Some offer no remuneration; paid roles range between £2k – £20k annually
Experience: Senior executive leadership in a similarly large, complex organisation; Prior board experience not always required.
Competition: Medium/high
Recruitment methods: Headhunters; open advertisements

Charities
Time commitment: 0.5 – 2 days a month (depending on size of organisation)
NB: The smallest charities can be run by their trustees, alongside other volunteers, and therefore be far more time-consuming. For purely non-executive experience, you should look at medium charities (£500k+ turnover) that employ a team of paid executive staff.
Remuneration: None
Experience: Specialist expertise in a relevant area; Prior board experience not necessarily required for smaller organisations.
Competition: Depends on size and profile of the charity – larger and/or well-known (inter)national charities are highly competitive; smaller, local organisations could be medium/low.
Recruitment methods: Networks; open advertisements; large charities may use headhunters.

Sports boards
Time commitment: 0.5 – 2 days a month (depending on size of organisation)
Remuneration: None (as they are constituted as charities)
Experience: Specialist expertise in a relevant area; Prior board experience not necessarily required.
Competition: Depends on profile of the sport and scale of funding.
Recruitment methods: Open advertisements; larger sporting bodies may use headhunters.

Below are Nurole’s annual reports on board compensation across the FTSE All Share, AIM, investment trusts, and startups.

• FTSE 250
• FTSE SmallCap
• AIM
• Investment Trusts
• Startups