Before the publication of its annual guide to non-executive director (NED) practice and fees in June, a partner at PricewaterhouseCoopers said: "A common question is: 'are NEDs getting paid enough for the responsibilities involved in the role'."
The fees of NEDs are increasing. The going rate is between £15,000 on an AIM company board and £54,000 for a FTSE-100 company. But with increased regulation and the threat of litigation, are the rewards worth the risk?
Non-executives at Equitable Life faced a £3.2bn claim for negligence and breach of fiduciary duty in 2005. At Hollinger International, they were pilloried for insufficient knowledge of corporate goings-on. The fact is that NEDs tread a fine line between supporting a business and jeopardising their own reputation and financial security.
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