Non Executive Director
A Non Executive Director (NED) serves on a company’s board of directors and works with Executive Directors to improve company performance.
NEDs are employed in a variety of sectors that range from non-profits to massive corporations.
Although it is often tricky to get the job in the first place, NEDs acquire instant credibility and are recognised as experts in their field. The position allows for a flexible schedule since NEDs are typically only expected at board meetings and public functions.
Professionals who hold this position add experience to their portfolio and make many vital connections through networking.
You may want to consider the position of Non-Executive Director if you possess the following qualities and skills:
- Knowledge About Board Procedure
- Critical Thinking
- Data Analysis
- Interpersonal Relationship Building
- Business Acumen
- Conflict Management
- Strategy and Planning
Responsibilities of a Non-Executive Director
Not many people grow up wanting to become a Non-Executive Director only because most people do not know what the job entails. NEDs’ responsibilities can include these ten things:
- Strategy Building: NEDs work alongside Executive Directors to create, implement, and oversee business strategy.
- Objective Criticism: The primary role of a NED is to provide objective criticism of company decisions to move the company forward.
- Networking: Many companies hire NEDs because of their relationships with external contacts. If outside knowledge or assistance is needed, NEDs often make it happen.
- Risk Assessment: As part of the governing board, NEDs continually assess risk and create contingency plans to protect a company.
- Overseeing Management: NEDs oversee Executive Management, including the hiring and firing of employees.
- Audit Information: Along with the entire board, NEDs ensure that all accounting information is reported correctly.
- Checks and Balances: Boards are comprised of both Executive and Non-Executive Directors, meaning that NEDs keep other directors accountable.
- Meeting Attendance: For a board to function effectively, NEDs must regularly plan and attend board meetings.
- Goal Setting: A Board of Directors determines the company goals and ensures that those goals can be met.
- Communication: Although it seems obvious, NEDs must communicate with other board members frequently and clearly to address company needs.
Working Hours And Pay of a NED
On paper, NEDs do not necessarily spend a lot of time “at work.” NEDs are responsible for attending board meetings, which typically meet once a month. However, the job requires a significant time commitment.
NEDs must have expansive knowledge about the industry and stay up to date on significant progressions in the business world. Therefore, NEDs spend the majority of their time doing research and remaining up to date on company performance.
Because of the time commitment and the knowledge that NEDs bring to the table, NEDs are well compensated. Pay often depends on the size of a company.
The following is a general guide for the expected incomes of NEDs:
- Small Companies: £15,000-£20,000 per annum
- Stock Market Listed Companies: £25,000-£40,000 per annum
- FTSE 100 Companies: £40,000-£100,000 per annum
Getting a Non-Executive Director Job
Becoming a NED can sometimes be a tricky process. Here are ten tips for breaking into the field:
- Quasi Board Experiences: Serve as a member of a team overseeing projects to gain experience.
- Non-Renumerated Role: Working in a non-renumerated role gives you non-executive experience while demonstrating your ability to act on a board.
- Be Persistent: Continually seek out opportunities to increase your chances of finding the right position.
- Tailor Your Job Search: If you have a background in a specific area, tailor your job search to your expertise.
- Make Contacts: NED positions typically circulate through word of mouth rather than traditional job listings.
- Market Your Value: Companies hire NEDs because of their potential value to a company. Learn to market your skills and quantify your value.
- Practice Patience: The interview process of a NED often occurs over an extended period rather than a single interview.
- Web Presence: Most people consider networking to be an in-person activity. Utilise the web and begin digital networking to make connections.
- Professional Documents: NEDs need to tailor their CVs and cover letters like all other professionals in the job market.
- Build Your Background: If you plan to pursue a career as a NED, build your background in business.
Progression After Being A NED
After gaining experience on a board, NEDs are extremely valuable in the job market.
The amount of experience and connections made from serving on a board make former NEDs hot commodities for companies looking to expand their reach.
Some NEDs decide to enter the executive world while others have lucrative careers in consultancy work. No matter what a NED chooses to do, focusing on experience is a sure way to cinch the next position.
The path to becoming a NED is hard but extremely rewarding. Experience and connections are the quickest ways to solidify your career as a NED, so begin building your portfolio today to take the first step toward becoming a Non-Executive Director.