Why becoming a Non-Executive Director could be a smart career move
Non-Executive Directors (NEDs) play a vital role in the governance and success of businesses. They are independent directors who bring skills, experience, and expertise to a Board of Directors. NEDs help to set the strategic direction of a company, provide objective oversight and guidance to management, and ensure the executive team is held accountable for their decisions.
Throughout our 26+ years of experience in Executive Recruitment, Moon has placed NEDs for countless organisations - from Charities and NGOs to FTSE and Publicly Listed Companies You can explore our Executive Search Case Studies and our Charity NED Case Studies which include some examples of our successful NED placements. Through this journey, we’ve gained a deep understanding of the numerous professional and personal advantages of becoming a Non-Executive Director.
Below are some of the most significant advantages of becoming an NED:
Making a difference - NEDs can make a real difference in the organisation they support. They can help shape the strategy and direction and play a key role in ensuring that the organisation is well-managed and accountable. These actions are often highly rewarding in both a personal and professional capacity.
Broaden your horizons - Working as a Non-Executive Director exposes you to different industries, new people, and fresh modes of thinking. This enables you to grow as a person and expands your professional network.
Develop your skills - NED roles can help you develop a range of transferable skills, such as strategic thinking, corporate governance, and risk management.
Improve your CV - Over more than 26 years of executive search, we have seen many leaders use Non-Executive appointments to broaden their experience and develop board-level thinking to position themselves for future career opportunities. A NED appointment signals that you can contribute beyond operational management and can provide strategic oversight.
Be rewarded - NEDs at most businesses are remunerated for their services, this is not just about money but the reward of supporting a business on its’ growth journey. In terms of salary, this should typically match the duties and time commitment. Most NED roles are part-time, giving you the flexibility to pursue other interests or commitments. Furthermore, you could earn additional remuneration by chairing risk and/or audit committees.
A well-chosen NED appointment can broaden your experience and accelerate your professional development. In our experience many accomplished leaders take a non-exec role in a smaller organisation as a means of later pivoting into a C-suite position and progressing their career more rapidly.
Whilst some non-executive appointments seek industry and sector knowledge, where this is not critical, it can be beneficial to seek a NED position outside of your core executive sector to signal your versatility and adaptability.
Board appointments often provide you access to Chairs, CEOs, Investors, Entrepreneurs and Founders. The relationships developed through serving on a board can lead directly to future executive, consulting, or additional NED opportunities and differentiate you from similar candidates.
Before applying to become a Non-Executive Director, it’s important to understand what the organisation is looking to gain by hiring their new NED. Of course, this can be highly specific based on the organisation in question, but here are some of the main benefits an NED provides:
Independent oversight - Non-Executive Directors are independent of the executive team, enabling them to provide objectivity and impartial oversight/guidance.
Strategic expertise - NEDs bring a wealth of experience and expertise to the Board. This helps develop and implement a sound strategy.
Diverse perspectives - Individuals from different backgrounds and experiences bring new ideas and previously unconsidered perspectives to the Board.
Challenge and debate - Non-Executive Directors should challenge the executive team, creating an open debate - ultimately ensuring the best decisions are made.
Legitimacy - A well-functioning Board with NEDs can enhance an organisation's legitimacy and reputation.
Even if you're not actively seeking a new role today, tomorrow's career-defining opportunity could be just around the corner. Get in touch with Moon Executive Search and be part of our network of senior leaders, executives, and Non-Executive Directors.