How much are board members paid?
How much are board members paid? The answer to this questions is always ‘it depends’. It depends on what board a person sits on, it depends on the turnover of the organisation and it depends on the skills of the board member.
Below is an analysis of average pay rates for board members and non-executive directors in the UK, the US and Europe.
Higher turnover means higher pay
According to a 2021/2022 survey of 605 board members across the UK, the US and Europe, conducted by the executive search firm Nurole, the higher an organisation’s turnover, the more its directors get paid.
The industrial sector has the highest average pay for directors and board members, but the finance sector dominates the highest paid positions.
In the US, directors are paid more
US-based organisations pay their directors more than their UK and European counterparts.
In the UK and Ireland, the number of contracted days board members must work is higher, which brings down the day rate.
The average annual pay and day rates across the regions
According to Nurole’s survey:
- The average pay rate for board members in the UK in 2022 is £43,312 a year or £1,804 per day.
- In the US, the pay rate for board members is £70,662 per annum or £3,212 per day.
- Across Europe, the average pay for company directors is £43,227 a year or £2,275 per day.
Day rates for boards members
Day rates increase with organisation turnover. Day rates in consumer firms and finance firms are the highest.
Equity packages
Directors at early-stage companies are most likely to have stock options. For example, 71% of directors in VC-backed organisations have some equity.
In fact, 14% of directors in VC-backed firms are only paid in stock options, which can be lucrative, especially in high-potential start-ups.
How to join a board of directors
“Certified board members with specific skills will always be in demand,” says David W Duffy, CEO of the Corporate Governance Institute.
“There have been tremendous changes in boardrooms over the past two years, and the future will bring even greater opportunities for certified directors. It is important for you to know how to join a board of directors.”
To become a certified board member, you can take the Diploma in Corporate Governance.
