Our Opinions


PWC 2016 NED Report

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Addressing agency risk is one of the primary reasons for appointing non-executive directors. Agency risk is the risk that executives will enrich themselves unfairly at the expense of (mainly) shareholders.

PWC researches NED Practices and Fees annually, and some of the latest results are extraordinary:

–  There were fewer NEDs in November 2015 than a year previously,
–  NEDs were younger,
–  NEDs had less board positions than previously (50%+ held 2 board positions),
–  There is a marked downwards trend in tenure,
–  The median NED pay increased by 4.9%.

The number of board positions was surprising, as it seems to contradict the Inoxico 2013 (admittedly older) research of 7.4 board positions of all directors. The median pay increase was also an eye opener, especially when recalling much publicised, multi-digit CEO pay increases.

The full report is available at:

PWC 2016 NED Report


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