What does a Non-Executive Directors cost for SMEs?
It’s a question I’m asked regularly:
“What should we pay a Non-Executive Director?” or the flip side:
“What do NEDs actually charge?”
While the honest answer is “it depends,” that’s never particularly helpful — so I’ve pulled together the most up-to-date research (as of mid-2025) from across the UK SME landscape to give you a practical benchmark.
Typical UK NED Pay Ranges in SMEs
If you're joining an SME as a Non-Executive Director in the UK, your annual fee will typically sit between £15,000 and £40,000. However, fees vary significantly depending on:
Company size and complexity
Industry sector (regulated vs non-regulated)
Specific board responsibilities (e.g. Chair or Committee roles)
Time commitment and level of involvement
Stage of the business (early-stage vs mature)
Here’s a more detailed breakdown:
Private SMEs (non-regulated)
| Role | Typical Fee Range |
|---|---|
| Base Non-Exec Director | £15,000 – £35,000 |
| Chairing a Committee (if any) | +£5,000 – £10,000 |
Larger Private / AIM-Listed SMEs
| Role | Typical Fee Range |
|---|---|
| Base Non-Exec Director | £50,000 – £80,000 |
| SID / Committee Chair / Risk Lead | £80,000 – £100,000+ |
What Does the Data Say?
According to Glassdoor, the average Non-Executive Director salary in the UK is:
💷 £81,243 per year
(25th percentile sits around £58,000)
That said, £10,000–£25,000 is still common for smaller SMEs or early-stage businesses — particularly where the time commitment is light or the NED role is part of a “value-add” relationship (such as mentoring founders, opening doors, or exit planning).
What Affects NED Pay?
Here are the six biggest variables that impact what a Non-Executive Director earns:
| Factor | Why It Matters |
|---|---|
| ✅ Company size & complexity | More complexity = more responsibility |
| ✅ Sector regulation | Heavily regulated sectors pay more |
| ✅ Time commitment | Meetings, prep, calls = more hours |
| ✅ Board roles (SID, Chair, etc.) | Additional roles mean higher pay |
| ✅ Your background & expertise | M&A, ESG, tech, governance = premium skills |
| ✅ “Skin in the game” expectations | Some roles expect investment, not just advice |
What Else Do You Get Beyond the Pay?
Yes, the money matters — but most NEDs I work with see the real value in three things:
Access: Connections to investors, founders, and new industries
Experience: Real-world boardroom governance, strategy, and leadership exposure
Equity: Opportunities to invest, earn shares, or be part of something from seed to exit
It's not what you know, it's who!
As part of my board advisory, NED and coaching work I help SMEs connect through my network.
🔍 11,000 personal connections
👥 27,000+ NEDs, Chairs, and Advisors within my extended network
- 30+ years of experience in boardrooms, from financial services to digital and not-for-profit.
📞 Let's Talk
If you're a company director or CEO exploring how a Non-Executive Director can help guide growth, governance, or a future exit — let's connect.