do non-executive directors get paid?

This topic has 4 replies, 3 voices, and was last updated 15 years ago by MikeLittle.

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April 27, 2011 at 3:20 pm #48256
irxtizzy
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I know this is a rediculous question to some of you but i just want to know if non-execs get paid anything and if they do what is the nature and extent of payment.
April 27, 2011 at 4:10 pm #81260
Leo_TWP
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Hi

Yes they do.

The remuneration of NEDs is determined by the board or the SHs…’within the limits prescibed by the company’s constitution’. (UK CGC)

Basically… their fees will differ from company to company, and because the remuneration committee comprises of solely NEDS, they determine the remuneration of executive directors, but it would go against corporate governance & best practice, if they were able to determine their own remuneration, and also against the characteristics of Non Executive Directors, such as… Independence, Integrity, Objectivity.

Does this make sense?
Raza
April 28, 2011 at 1:25 pm #81261
irxtizzy
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Exactly what i was looking for
Cheers boss!
April 28, 2011 at 3:38 pm #81262
Leo_TWP
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@irxtizzy said:
Exactly what i was looking for
Cheers boss!

You’re Welcome.
Raza
May 3, 2011 at 3:59 pm #81263
MikeLittle
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Not only do they receive “Fees” ( not a salary ) but in addition they are able / allowed to hold shares in the company! Now that’s a shocker! Well, it was to me when I first read it
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