An Executive's Guide to Becoming a Non-Executive Director

Have you thought of becoming a NED? It’s a common belief that becoming a NED is a step taken only after leaving a full-time executive career. However, more executives are taking on NED roles while still working full-time. The UK Corporate Governance Code supports this, recommending a limit of one NED role to ensure executives can meet their primary responsibilities.

Balancing both roles can be incredibly rewarding, but it’s essential to go in with a clear understanding of the challenges.

Benefits of a NED role while working full-time

1.  Broader business exposure - A NED role provides insight into different industries and corporate structures, broadening your strategic thinking.

2.  Enhanced governance and boardroom skills - NEDs play a key role in governance and oversight, making it a great opportunity to build leadership and strategic skills.

3.  Expanded network & influence -  Joining a board connects you with other senior leaders, opening doors to new business and career opportunities.

4.  Personal & professional development - With the average NED tenure at 4.3 years, these roles provide stability and a chance to influence long-term strategy.

5.  Career progression - A NED role can help position you for a future portfolio career, demonstrating versatility and governance expertise. 

Challenges of holding a NED role while working full-time

1.  Time commitment - NED roles typically require 10-40 days per year, not including additional time for unplanned matters. This can add pressure to an already demanding schedule in a full-time executive role.

2.  Potential conflicts of interest - Holding both roles, especially in related industries, can lead to conflicts. Transparency and clear boundaries are essential.

3.  Regulatory & compliance risks - NEDs share equal responsibilities with executives and must stay diligent to avoid reputational and legal risks.

4.  Employer perception - While many companies support executives taking NED roles, some remain sceptical about managing both commitments. This can be an issue amongst recruiting boards too.



Key considerations before accepting a NED role

1. Discuss with your employer - Ensure your employer is supportive and there are no conflicts with your current role. 

2.  Assess your availability - Although board schedules are typically planned a year in advance, unexpected demands can arise. Be realistic about your capacity.

3.  Choose the right organisation - Pick a company where you can add value and learn. Consider industry relevance, company culture, and governance standards.

4.  Understand your legal responsibilities - NEDs have legal and financial obligations. Make sure you’re clear on your responsibilities before committing.

5.  Maintain your work-life balance - The unpredictability of NED responsibilities can affect your personal time. Make sure you can balance both roles effectively.

Final thoughts

Holding a NED position while working full-time can be an incredible opportunity for growth, learning, and networking. However, it’s important to weigh the benefits against the potential challenges. If you decide to take on a NED role, ensure it aligns with your career aspirations, time capacity, and employer’s expectations. Done right, it can be a strategic and fulfilling addition to your career.

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.