Parmi Natesan | CEO | The Institute of Directors in Southern Africa (IoDSA) | mail me |
Non-executive directors (NEDs) are responsible for making critical strategic decisions and for overseeing the management of a company without the benefit of observing the business on a full-time basis.
This requires particular skills, knowledge, experience and business judgement, for which they need to be fairly remunerated.
Determining fair remuneration is complicated due to the following:
- NED contributions are made in a number of different ways, requiring different time commitments;
- there is no consistency on the prescribed number and duration of standing meetings per annum; and
- there is no uniform method of remunerating NEDs.
Each organisation will need to consider its specific circumstances and needs from a NED, when determining what would be fair remuneration.
In order to provide high-level benchmarking guidance, we have produced the 6th Edition of the Non-Executive Directors’ Fees Guide. This edition is based on a desktop review of publicly available data extracted from 178 JSE listed companies, including the Altx companies.
The purpose of our NED Fees Guide is to provide high-level insights for boards, and specifically remuneration committees, around:
- the various NED fee structures being utilised; and
- the average annual fees for board and committee members.
Click here to access the 2019 NED Fees Guide