Non-Executive Director in Lancashire, Manchester or NXD / NED

Non-Executive Directors or Senior Independent Directors are often referred to as SID, NXD or NED depending on who you talk to. They offer many businesses exceptional value but can be of particular use to small and independent businesses as they usually bring a wealth of contacts, experience and good quality business along with them.

Bradex Business Solutions offers non-executive directorships as an extended service to its clients based on the combined wealth of experience and variety of industries covered by our team of associate board advisers, coaches, mentors and consultants.

We have seven potential Non-Executive Directors in Lancashire, Manchester and the North West.

The role of Non-Executive Directors is broad.

Non-executive directors are employed by the company and appointed through a letter of appointment. They should challenge, question and monitor the Chief Executive, Directors and senior management; they bring an independent perspective to decision-making; they hold senior management to account; they also support and mentor the CEO and senior management.

They are a “critical friend” and must act in the interests of the company’s stakeholders (e.g. shareholders, employees, pensioners, suppliers) before their own.

Non-executive directors typically sit on the main board and have responsibility for the board sub-committees.

So why would you use a Senior Independent Director?

A senior independent director should provide a strong sounding board for the existing company directors, and can often offer a creative contribution to the board by objective criticism, or to put it in plain English play the role of devil’s advocate.

We should be able to offer an alternative viewpoint and share our opinions freely, and often we will come with a wealth of hands-on experience and relevant business connections which can be shared with other company directors, to be made the most from.

British Chambers of Commerce states:

As part of their role as members of a unitary board, non-executive directors should constructively challenge and help develop proposals on strategy. Non-executive directors should scrutinise the performance of management in meeting agreed goals and objectives and monitor the reporting of performance. They should satisfy themselves on the integrity of financial information and that financial controls and systems of risk management are robust and defensible. They are responsible for determining appropriate levels of remuneration of executive directors and have a prime role in appointing and, where necessary, removing executive directors, and in succession planning. - Taken directly from the British Chambers of Commerce.

So what does a non-executive director do?

Non-executive directors are expected to remain focused on board matters and not get involved in executive directions, which means they should maintain an independent or outside view of the company and remain removed from the daily running of the business. However, from our own experience we have found that being a director of a small to medium business can often be a lonely place, and a good NED can be a great sounding board, mentor and coach for yourself.

They are, however, expected to bring the following qualities to the board:

  • independence
  • impartiality
  • wide experience
  • special knowledge
  • personal qualities

Non-Executive Director in Lancashire, Manchester or NXD / NED

What should I expect to be paying a Non-Executive Director?

For example, Non-Executive Directors or (Senior Independent Directors (SID) on the boards of small independent businesses (SMEs) as opposed to a Government body or large PLC will be paid entirely differently. For some the costs of hiring an SID or NED may start from as little as £15,000 and for others may be up to £90,000 per annum.

This will depend on the number of days you will need to a Senior Independent Director or NED to commit to the role, along with the risks and knowledge associated with the particular role you want your NED to fulfil, and what you are looking for your NED to share and get from the role, hiring a non-executive director on this basis may work well for you.

We have seven potential Non-Executive Directors in Lancashire, Manchester and the North West with SME, Non-Profit and Large Corporate experience.

According to Board Appointments 2023 snapshots and Deloittes earlier Executive Pay publications, a non-executive director could expect average base fees (before taking into account additional fees for committees etc.,) of £52,500 per annum in a FTSE SmallCap; £76,868 in FTSE.

What do I need in place to hire a Non-Executive Director in Lancashire?

In order to take on a NED you will need to have in place adequate Directors & Officers (D&O) Indemnity Insurance, and have in place a contract for services, detailing the responsibilities of the NED and the remuneration package.

ICSA Guidance Notes on NED
Example NED from Nominet

You’ve convinced me, so what do I do next?

Simply pick up the phone and call us on 0161 751 2320 to speak to a Lancashire Non-Executive Director or complete the contact form below and we will ring you straight back.

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