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Latest NewsExecutive payExecutive recruitmentPay & benefitsRecruitment & retention

Non-executive directors’ pay up 21%

by Mike Berry 18 Jul 2005
by Mike Berry 18 Jul 2005

The pay packets of UK non-executive directors have risen by an average of 21% over the past 18 months, according to research out today.

Information group Incomes Data Services, said the average FTSE 100 non-executive chairman commands a salary of about £250,000 a year, while the average FTSE 100 non-executive director is paid about £42,000.

The range of non-exec director salaries in the UK has also grown, with the lowest paid earning just £5,000 and the highest paid earning £95,000.

IDS said the findings showed that companies were recognising the increasing responsibilities of non-exec directors which have arisen in the aftermath of Sir Derek Higgs’ report into corporate governance, published two years ago.

Steve Tatton, editor of the IDS report, said: “Our findings show that companies are taking account of the Higgs report.

“But the area where top companies are falling short is on board diversity. Female and ethnic minority non-executives are still few and far between.”

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The report revealed that in the FTSE 100, only 12% of non-execs are female, falling to 6.3% in the FTSE 250.

The TUC said companies are still failing to tap into the broad, diverse pool of potential board members.

Mike Berry

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