Non-exec pay rises to £65,000 with extra legal responsibilities

 
Tim Wallace
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Directors’ pay is rising faster than the average worker’s income, as non-executives are being loaded up with extra legal responsibilities, PwC said this morning.

The average non-executive director (NED) saw their fees rise seven per cent in 2014 to £65,000.

Fees stayed flat in 2013, so the increase in 2014 marks a return to the regular rises seen in the previous five years.

FTSE100 chairmen saw an average increase in fees of three per cent to £373,000.

Heads of board audit committees received the most in additional fees, at £23,000 per year.

Next up was the remuneration committee at £20,000, followed by £15,000 to chair the nomination committee.

Bigger rises could be on the way to make sure non-execs are paid in line with their extensive responsibilities.

“In our experience, non-executive director roles are becoming increasingly challenging, time-consuming and carry a greater reputational risk,” said PwC’s Fiona Camenzuli.

“Some companies will need to make step changes to non-executive director fees to reflect this if they have not done so in recent years.”

Directorships are becoming more time-consuming as a result of new rules and regulations.

Typically following a corporate crisis or scandal, extra responsibilities are loaded onto the non-execs, as part of their oversight role.

For instance in the banking sector, bosses could even face jail if a firm collapses and it can be shown they did not act fully to mitigate the risks the bank was taking in prior years.

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