Types of Board Roles
"Board member" encompasses several distinct roles, each with different responsibilities and compensation:
Non-Executive Director (NED)
- Role: Formal board member with fiduciary duties
- Responsibility: Governance, oversight, strategy
- Liability: Legal obligations under Companies Act
- Compensation: £20,000-£100,000+ per year
- Time: 1-2 days/month + prep
Board Advisor
- Role: Informal advisor without board seat
- Responsibility: Guidance, connections, expertise
- Liability: No formal legal obligations
- Compensation: Equity, small retainer, or fees
- Time: Few hours per month
Chair (Non-Exec)
- Role: Leads the board
- Responsibility: Board effectiveness, CEO relationship
- Liability: Full NED responsibilities plus more
- Compensation: 2-3x NED fee
- Time: 2-4 days/month
Observer
- Role: Attends board but doesn't vote
- Responsibility: Usually investor representation
- Liability: Limited
- Compensation: Usually none (investor role)
- Time: Board meetings only
What Do Board Members Do?
According to the Institute of Directors, non-executive directors have three primary functions:
Strategy
Contribute to strategic development, challenge assumptions, and bring external perspective to strategic decisions.
Scrutiny
Hold management accountable for performance against objectives. Review financial reports, risk, and compliance.
Support
Support the executive team with advice, connections, and experience. Act as sounding board for the CEO.
Risk & Compliance
Ensure appropriate risk management and regulatory compliance. Serve on audit and risk committees.
Board Member Compensation
| Company Type | NED Fee (Annual) | Chair Fee | Time |
|---|---|---|---|
| Early-Stage Startup | Equity only | N/A | Ad hoc |
| Scale-Up (£1-10M) | £10,000-£25,000 | £20,000-£40,000 | 1 day/month |
| SME (£10-50M) | £25,000-£45,000 | £45,000-£80,000 | 1-2 days/month |
| Mid-Market | £40,000-£70,000 | £70,000-£120,000 | 2 days/month |
| FTSE 250 | £60,000-£100,000 | £150,000-£250,000 | 2-3 days/month |
Building a Board Portfolio
Many experienced executives build a portfolio of board roles as part of a portfolio career. A typical portfolio might include:
Example Board Portfolio
Combined with 1-2 fractional executive roles, this creates a diverse £200,000+ portfolio career.
How to Get Board Roles
- Network: Most board roles come through personal connections and referrals
- Visibility: Build profile through speaking, writing, and industry involvement
- Recruiters: Register with board search firms (Odgers, Heidrick, Spencer Stuart)
- IoD: Join the Institute of Directors and their board matching service
- Qualifications: Consider IoD Certificate/Diploma in Company Direction
- Start smaller: Advisory roles and charity boards build experience
Summary: Fractional board members (NEDs and advisors) serve multiple organizations, providing governance, strategy, and oversight for 1-2 days per month each. Fees range from £20,000-£100,000+ per board, making it a lucrative part of a portfolio career.