Non-Executive Director Fee Guide
The data within this report has been gathered from searches that Sayer Haworth have been engaged on, supported by data within annual reports in the public domain.
|Fixed Fee INED £||Median £|
|Foreign Subsidiary Bank||40,000 – 70,000||53,200|
|Established Challenger Bank||50,000 – 80,000||62,500|
|Building Societies||25,000 – 55,000||32,000|
|Listed SME Bank||70,000 – 95,000||76,500|
|New Start-up Bank*||35,000 – 65,000||42,700|
*on gaining of license, fees move to an established INED fee depending on the segment focus
|Fixed Fee Chairperson £||Median £|
|Foreign Subsidiary Bank||50,000 – 110,000||92,000|
|Established Challenger Bank||125,000 – 185,000||152,000|
|Large Building Societies||172,000 – 196,000||175,000|
|Small Building Societies||37,000 – 55,000||37,500|
|Listed SME Bank||180,000 – 210,000||186,000|
|New Start-up Bank*||80,000 – 150,000||123,000|
*on gaining of license, fees move to an established fee depending on the segment focus
Chair of Committee Fees
In the instance where an individual holds a Chair of a Committee or is a Senior Independent Director (SID), which carries an SMF responsibility, there is an average additional annual fee of between £6,000 – £15,000 on top of the standard annual fee for all INED’s. Within the small building societies, the general trend was no additional fees for extra responsibilities.
Within the publicly listed Banks Chair of Committee fees rose to £20,000 per annum. The Chair of the Audit and Risk Committee also has a general trend of being awarded a higher annual Fee due to the associated risks.
Membership of a Committee Fee
Membership of a committee Fee levels range from £5,000 – £10,000 per annum. The small building societies, the general trend was no additional fee for extra responsibilities.
PAYE v Contract
With IR35, the general trend is that fees are paid through PAYE, to be compliant with this legislation.
The trend of paying through PAYE has been common practice for a number of firms even before IR35 was a topic.
With the role being an appointee and not an employee, the benefits on offer to employees is not offered. This has been a common question of debate where Fees are paid through PAYE.
Expenses incurred to attend Board Meetings is dependent on where the place of work is stated on the contract. If the place of work is the location of the majority of Board Meetings, any expenses claimed for travel is taxable and included within a P11D.
Sayer Haworth Board Appointments contacts:
James Sayer – Managing Partner
James has been within Executive Search in the Financial Services sector for over 20 years, having lived and worked in the UK, Europe and the Middle East. James has acted as a trusted business partner to source Board and Executive talent within SME Banks. James focuses on forming long-term partnerships with his clients in order to offer a truly consultative service built on time investment, integrity and a considered service delivery to generate the right solution.
Tel: +44 (0) 203 751 6260
Mob: +44 (0) 7951 966 0777
Andrea Mynard – Practice Leader
Andrea has worked in the sector for more than 20 years. Andrea delivers a uniquely personalised service – focusing on understanding a client’s needs and matching requirements with a tailored search including market mapping, identification of talent, engagement and screening.
Tel: +44 (0) 203 751 6260
Mob: +44 (0) 7712 877 384
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