Want to be a NED? 5 myths you should know

5 Myths about Non-Executive Director roles

Welcome to the first of our NEDfit blogs! If you’re exploring the idea of becoming a Non-Executive Director (NED) or striving to land your first role, you’ve come to the right place.

Let’s be clear: being a NED can be an incredibly rewarding experience—when you find the right fit. It’s an opportunity to leverage your skills, contribute to society, and forge new connections. For many, it also offers more flexibility compared to a full-time executive role, especially if you embrace the variety of a portfolio career, working with multiple organisations.

Sounds amazing, right? It often is! But you need to approach this career path with your eyes wide open. Read on for five common myths about becoming a NED, so you’re fully prepared for the journey ahead.

Myth 1: All NED roles are highly lucrative

The truth? NED compensation varies widely. Some roles, particularly in the Not-for-Profit sector (often called Trustee roles), are unpaid. At the lower end, you might earn £5.6k as a NED for a Housing Association or £13k at an NHS Trust. In contrast, FTSE companies often pay around £76.8k. Rates typically rise for Board or Sub-Committee Chairs or Senior Independent Directors.

An increasingly popular variation is the “investor NED” role, common in startups and scale-ups. These roles often involve personal investment, and your compensation might include equity or shares instead of—or in addition to—a traditional salary. Keep in mind, this type of role can carry both higher financial risks and rewards, as well as a different role profile to that of a traditional non-executive director.

If you’re looking for a “get rich quick” scheme, a NED role isn’t the right path. But if you’re seeking meaningful work with fair remuneration (depending on the role), it could be a perfect fit.

Myth 2: NED roles are only for those approaching retirement

Not anymore! While becoming a NED was once a natural progression for retired executives, today’s landscape is very different. Many professionals take on NED roles while still in full-time employment.

Why? A NED role can boost your leadership skills, expand your business acumen, and accelerate your executive career. It’s also a win-win for your employer. Bringing fresh insights from another organisation back into your current role can make you a more valuable asset.

If you’re considering a “working NED” role, have an open conversation with your employer. It’s vital to ensure that both roles can be managed effectively without conflict.

Myth 3: Being a NED is an easy meal ticket

The perception of a NED role as a “two days per month” commitment is misleading. While the number of formal meetings may seem light, the preparation, research, and behind-the-scenes work are often substantial.

Expect to spend hours reviewing board packs (which can run to hundreds of pages), engaging with stakeholders, attending strategy days, and occasionally stepping in during critical situations like CEO recruitment or major contract decisions.

While NEDs don’t handle day-to-day operations, they do bear fiduciary responsibilities and are accountable for the company’s actions. Continuous professional development (CPD) is also essential—you can’t afford to be an “out-of-date” NED.

A good rule of thumb? Double the time commitment you’ve been told. And if possible, speak with current NEDs on the board to get a realistic sense of the time demands.

Myth 4: You can only get a NED role in your industry

It’s true that some organisations prefer candidates with industry-specific experience, but many focus on transferable skills and relevant expertise instead.

For example, if you’ve worked in heavily regulated environments, you may qualify for roles in other regulated sectors outside your industry. Similarly, technical experience in areas like digital transformation or financial oversight can make you a strong candidate for diverse opportunities.

The key? Tailor your application to clearly explain why you’re a great fit. With NED roles often attracting 100+ applications, your submission needs to stand out — and be easy for recruiters (and recruiting algorithms) to review.

Myth 5: It’s a job for life

Landing your first NED role is a significant achievement, but don’t assume it’s a lifetime appointment. Most NED roles are fixed term, typically 3-5 years, with the possibility of renewal.

However, organisational needs can shift over time. A company’s strategy might evolve, requiring different expertise on its board. Or, as part of your portfolio career aspiration, you need to rebalance your roles to avoid potential conflicts of interest.

Flexibility is key. Embrace the transience of NED roles as part of the excitement of your career journey.

Final thoughts

Becoming a Non-Executive Director can be one of the most fulfilling chapters of your professional life—but it’s not without its challenges. By debunking these myths, I hope I’ve given you a clearer picture of what to expect and how to prepare.

Whether you’re eyeing a role in a large corporate, a startup, or a not-for-profit organisation, the right NED position is out there for you. Take your time, do your research, and ensure the roles you pursue align with your goals, values, and lifestyle.

If you have found this blog interesting, and are interested in fast-tracking your career to becoming a Non-Executive Director, take a look at our NEDfit tailored coaching programme here, or contact us at: info@nedfit.co.uk to find out more.