26 August 2014
Media release
Directors’ fees - growth again after quiet years
The Institute of Directors 2014 Directors’ Fees Report shows directors’ fees have risen this year after several years of little change.
Institute of Directors Chief Executive Dr William Whittaker said the increase in director fees could be attributed to
several things.
“It’s partly a correction after a few years where fees have been flat or increased slightly. But it’s also a reflection
of the improved economy where companies are in a better position to increase payments. There’s also an element of
greater awareness of the importance of the role of directors and chairmen and recognition that the roles carry an
increasing level of personal risk.”
The 2014 survey, carried out in conjunction with dsd Consulting, included 1,262 organisations and 1,883 directorships
making it the IoD’s largest ever fees survey. It highlighted a number of interesting trends.
The median fee for a non-executive director increased from $36,000 to $40,000, while the median fee for a non-executive
chairman increased from $50,000 to $51,000.
Dr Whittaker said a pleasing aspect of the survey was the increased representation of women both in numbers and in
remuneration. In 2014, 23.9% of the survey sample were women up from 19.9% in 2013, while the gap between male and
female directors fees was also closing.
The median for male non-executive directors increased by $2,800 in 2014, while for females the rise was $10,500. Female
non-executive chairman had also recorded a larger median increase than males.
“The survey shows pay disparity between male and females directors and chairmen is closing, which I believe is mainly
due to the increased numbers of women being appointed as directors and chairmen in more private company boards”, Dr
Whittaker said.
The disparity between New Zealand and overseas owned companies also increased. The median fee for a non-executive
director for New Zealand owned firms rose from $27,000 in 2013 to $36,000 in 2014, while the median for overseas owned
firms more than doubled, rising from $40,000 in 2013 to $85,000 in 2014.
Directors at all levels continued to volunteer their time and expertise for free, with 50.9% of directors surveyed
having one or more unpaid directorships, up from 44.7% in 2013.
Attached is information about the 2014 director’s fees report, including a snapshot of some of the key findings. The
survey covered 1,262 organisations and 1,883 directorships making it our largest fees survey:
ENDS