Non executive directorships

D

DeeKie

Registered User
Messages
929
Are any AAM members non executive directors of any companies in a paid capacity? I’d be interested to know what you think of your experience. Is it personally fulfilling? Do you get paid? How did you secure your position?
 
Hi DeeKie

The main mistake people make is being flattered by being offered a directorship and accepting one which they should not accept.

Being a director has serious responsibilities attaching to it and if the company becomes insolvent, a non-executive director is no different from an executive director and can't say "I didn't know what was going on!".

So, if you are offered a directorship, then you should make sure you get the latest audited accounts and the most recent management accounts. If you can't read a set of accounts, then don't take up a directorship.

Brendan
 
Yes. I’m on a very well run national charity board and I did a course dealing with finance of companies. I also have to look at company accounts for work from time to time. I’ve studied company law so I feel quite equipped for a board position. I just don’t know how to investigate securing a paid position. I don’t want one immediately but im looking to move towards working less and think some board positions would be an interesting part of this plan.
 
Brendan Burgess said:
If you can't read a set of accounts, then don't take up a directorship.
Click to expand...
I would not necessarily agree that financial skills are essential to take up a NED.

Some Boards require a balance of skill sets, and thus might require a NED with IT, Marketing or HR skills. Such NEDS are entitled to rely on the expertise of the finance director on the board etc.

Jim Stafford
 
Hi Jim

I think it's very risky to take on an NED without being able to understand the finances of a business.

There may be a legal defence, but who wants to go down the road of explaining one's self in court?

Brendan
 
Brendan Burgess said:
Hi Jim

I think it's very risky to take on an NED without being able to understand the finances of a business.

There may be a legal defence, but who wants to go down the road of explaining one's self in court?

Brendan
Click to expand...
Hi Brendan

I'm with Jim on this. It seems perverse to confine board memberships to accountants and finance professionals. I most certainly wouldn't invest in any company with such a board composition.
 
I think a Board of, for example, a mental health recovery charity needs more expertise than accountants and finance professionals (while accepting that members need to be aware of their wider responsibilities).
 
Boardmatch.ie is a good source if you are looking to try and sign up for one.

I've done it a couple of times in the past, both on bodies in my industry and got offered it through my own contacts. It was a good learning experience in terms of understanding the legal ramifications on how a business actually works. I've also done a couple of years on a local charity board, (not for payment) but left, partially due to the time committment and partially as the internal politics on that board were doing my head in.

If you are offered something, do a due diligence of the organisation. You don't want your professional reputation damaged if you end up as a director of an external company that you find is riddled in mis-management and scandle

Stateboards.ie advertises anything in the Public Sector
 
Last edited:
I do it and find it personally fulfilling - it has the right combination for me of not tying me down to one location for the majority of my time and not requiring full time commitment, whilst still working with teams of people, using and developing my skills and making a difference.

Heres what you need:
  • Fundamentally to make decent money at it you need special expertise and senior level experience in the area that boards are looking for (as others have said this could be marketing, digital, IT, commercial, logistics etc depending on the company).
  • A strong network in both UK are Ireland - There aren't that many companies in Ireland employing independent NEDs/ Chairs that you can make a living from - there are some but far more opportunity if you widen net to the UK
  • The easiest time to plan this transition is when you are being successful in your career - not when you've left your full time career and then decide from scratch to go non-exec
  • A good understanding of how the industry works and can work for you - e.g. base salary vs equity, are they asking for you to invest etc
  • A route in - especially to your first one/two - has to come really via contacts you know/build up from your earlier career
  • Being female is an advantage - quite rightly many boards are looking to balance their representation and get the right mix of skills that males and females bring - at this moment in time females with all the right skills and good senior experience are well in demand.
And as others have said, choose wisely, epsecially the first ones - how long you stayed and the impact you make/reputation you build on the first ones will either set you on course for a very interesting fun and varied multi decade non-exec career, or see it as a flash in the pan that never really takes off.
 
Thanks Farma1. That’s very helpful.

I often wonder why people do the public sector ones as they seem very stressful and are not paid.
 
DeeKie said:
Thanks Farma1. That’s very helpful.

I often wonder why people do the public sector ones as they seem very stressful and are not paid.
Click to expand...
Some do pay.
Some pay expenses.
Several advertised here right now do anyway:

https://stateboards.ie/en/info-and-resource-hub/list-of-vacancies
I guess that people do it for different reasons (apart from any remuneration/expenses that apply).
E.g. to serve the public, to gain experience, to raise their profile, to network/make contacts etc.
 
ClubMan said:
Some do pay.
Some pay expenses.
Several advertised here right now do anyway:

https://stateboards.ie/en/info-and-resource-hub/list-of-vacancies
I guess that people do it for different reasons (apart from any remuneration/expenses that apply).
E.g. to serve the public, to gain experience, to raise their profile, to network/make contacts etc.
Click to expand...
Most of them pay although you’d never get rich. They used to be gifted for political patronage but the process has tightened up considerably in the last 10 years or so.

In my experience the positions are occupied by people with significant relevant expertise who have an interest in serving the public interest.
 
You must log in or register to reply here.
Back
Top