Comments on: Do Non-Executive Directors get paid?

By: Cory Smith

Cory Smith — Thu, 13 Dec 2012 11:31:09 +0000

I think NED are an excellent idea. Many individuals in the corporate arena have highly important skills and specialist knowledge which would prove very valuable to start up or growing business. e.g. In Finance. One of my colleagues, a small business owner, is being assisted by a CFO (who has a full time job with a corporate company) to completely financially overhaul his business. In a significantly short space of time, this has led to the CFO realising the further potential of his skills, outside the corporate arena, and he is currently negotiating a NED deal with a start up, with a 20% + equity ownership. The trend seems to be moving away from corporate behemoths; more skill, experience and professionalism is definitely required in the start up arena, therefore NED + Entrepreneur = Better chance of success

By: Gary Lumby

Gary Lumby — Tue, 13 Nov 2012 16:41:45 +0000

As a NED and NE Chair of a number of SME’s including one start up, I completely agree that NED’s need to be both flexible and realistic in terms of their remuneration expectations. It will often mean that they are working for free or for very little until they prove themselves and their worth to the business. If they have the confidence that they can add real value then that should not prove a problem as long as an agreement is in place at the outset as to what fees will be incurred and when.
Providing NED services to SME’s is very rewarding and to see a business grow and flourish partly as a result of your help and assistance is reward in itself.

By: David Wogel

David Wogel — Tue, 13 Nov 2012 12:04:01 +0000

Many NED are retired and/or financially independent and working for free or small equity to benefit from their experiance is a socially responsible thing to do, like volunteering and or giving to charities.