Companies

Who this is for

This pathway is for commercial organisations who are considering adding their first NED or an advisory board, and nobody involved has done it before.

Or there is a NED already and it is not working, and the cause is not obvious.

Or the board needs refreshing and the question is what 'good' looks like.

What you will find here

• Guidance to help you determine whether the company is ready for independent input—and recognise the signs that it is not.
• A comparison of advisory boards and NEDs, including their differing levels of authority, liability, and cost.
• An overview of typical costs and the factors that influence them in your market.
• Advice on how to write a brief, where to look, and how to reach beyond the people you already know.
• Guidance for the first ninety days, which are crucial to the appointment’s success.
• Practical approaches to refreshing a board: skills matrices, term limits, and managing the departure of a long-serving member.
• Advice on what to do when an appointment is not working.

Not quite you?

Are you a charity or non-profit organisation? Go to Not-for-profit. <link>

Are you considering a board seat yourself? Go to Aspiring NEDs.

Does our company need a NED?

Usually the trigger is a decision the existing team cannot test: a funding round, a succession, a new market, an investor or regulator requirement, or a pattern of decisions going unchallenged.

What is the difference between an advisory board and a NED?

An advisory board holds no formal authority, and its members carry no directors' duties. A NED sits on the statutory board, votes, and carries the same legal duties as an executive director.

How much does a NED cost?

Cost is driven by jurisdiction, sector, company size and complexity, days expected, and whether the role includes chairing. Add directors and officers insurance and expenses. Equity is sometimes used in early-stage companies and raises independence questions.

How long should an appointment last?

Fixed terms of around three years, renewable, are common in many markets. Open-ended appointments are difficult to terminate.

What do we do if it is not working?

Start by revisiting the foundations of the appointment. Was the brief clear? Was the induction thorough? Has the board provided the information, access, and support the person needs to contribute effectively? What appears to be a poor appointment may instead point to gaps in how the role was defined, introduced, or supported. Identifying those gaps early can help the board decide whether the relationship can be reset or whether a different course is needed.