"What will it cost me?" is usually the second question a founder asks about a non-executive director, right after "what would they actually do?". It is a fair question and a hard one to answer honestly, because the real answer is a range, not a number, and because the market you are reading about matters as much as the role.
Here is the sourced version, written for a business in the UAE but drawing on the markets where the data is thickest.
The short answer
A non-executive director is paid a fee, not a salary. They are not an employee. They hold a board seat, govern rather than manage, and give the company a small number of days a year, so the cost is an annual fee sized to the responsibility, not a monthly payroll cost.
For a private small or mid-sized business, the useful benchmark comes from the UK, where the market is most transparent: non-executive fees for SMEs commonly sit in the region of £15,000 to £50,000 a year, according to guides from board networks such as Connectd and Dynamic Boards. Larger and listed roles run higher: NEDonBoard puts the FTSE 100 median around £80,000, and Board Appointments reports a UK average base fee of roughly £80,000 in 2026. Chairs of large boards can be paid well into six figures.
The important point for a founder is that the cost tracks the size and complexity of the business, not the person. A seat on the board of a scaling private company is a different commitment, and a different fee, from a seat on a listed board.
Fee, not salary: why that matters
It is worth being precise about the language, because it changes how you budget.
A salary buys someone's full-time working week. A non-executive fee buys judgement applied to a handful of important moments across the year: the board meetings, the reading around them, and the director's availability to the chair and chief executive in between. The typical commitment is 15 to 25 days a year, or put another way, a day or two a month. You are not paying for hours. You are paying for the responsibility of the seat and the experience of the person in it.
That is also why non-executive directors are almost always paid a fixed annual fee rather than a day rate. A day rate implies you are buying time; a fee reflects that you are buying accountability. Where a day rate is quoted, UK guides put it anywhere from a few hundred pounds to well over a thousand a day depending on seniority, but the annual figure is the one to plan around.
What the UAE picture looks like
The UAE has less public benchmark data than the UK, for a simple reason: the demand-side question is asked less often here, and much of the search traffic for "board of directors salary in UAE" is really about executive pay, not non-executive fees. That does not mean there is no framework. There are two anchors worth knowing.
The first is a legal ceiling. For listed public joint stock companies, the UAE Commercial Companies Law caps total board remuneration: it may not exceed 10% of the company's net profit for the year, after depreciation and reserves are deducted. So on a listed board, director pay is bounded by profitability, not set in the open market.
The second is that some listed companies publish their policies. Dubai Investments PJSC's board remuneration policy, for example, provides for a lump sum of AED 200,000 per board member in a year without distributable profit. Mercer publishes periodic UAE board remuneration insights for those who want a fuller market picture.
For a private UAE SME or family business, none of the listed-company mechanics apply. The practical approach is to read across from the UK and Australian ranges, adjust for your sector and scale, and treat any single quoted number with suspicion.
The markets side by side
Because the data is uneven, a comparative view is the most honest way to size the cost. These are market benchmark ranges for a comparable non-executive seat, not our fees.
Market | What the seat is called | Typical annual fee for an SME/mid-market seat | Source |
|---|---|---|---|
United Kingdom | Non-executive director | ~£15,000 to £50,000 (FTSE 100 median ~£80,000) | Connectd, NEDonBoard, Board Appointments |
United Arab Emirates | Non-executive / independent director | Thin public data; listed pay capped at 10% of net profit; published examples exist (e.g. AED 200,000 lump sum) | UAE Commercial Companies Law; Dubai Investments PJSC |
Australia | Non-executive director | ~AUD 75,000 average for larger non-listed and public boards; less for small listed | Board Direction / AICD |
Singapore | Non-executive / independent director | Thin public data; fees set per company | Company disclosures |
United States | Advisory board member / independent director | Equity ~0.25% to 1% and/or a cash retainer; independent seats via retainer plus equity | Market guides |
The pattern is clear: the UK is the reference market, Australia sits a little below it, the US prices advisory seats in equity, and the UAE and Singapore are set company by company against a lighter benchmark. If you want the fuller detail on the UAE regulatory backdrop, our explainer on board governance in the UAE covers the listed-company rules in depth.
What actually moves the number
If you are trying to budget, four factors do most of the work.
- Size and complexity. A larger, more complex or listed business pays more than an early-stage private one. This is the biggest single driver.
- Sector and regulation. A regulated financial-services entity, or one preparing for a listing, asks more of a director's time and expertise, and pays accordingly.
- Role on the board. Chairing the board, or an audit, nomination or remuneration committee, carries an additional fee on top of the base seat.
- Responsibility and risk. A director takes on genuine statutory duties and accountability. The fee reflects that this is a role with real weight, backed by proper directors' and officers' insurance.
One thing that should never be a cost
There is a line in this market worth stating plainly: the company appoints and pays the director. A credible non-executive director is engaged by the business and is never charged a fee to be placed on a board. Candidate-paid board "membership" platforms exist, and they are the model to be wary of. The company pays, the director never does.
If you would like a straight, benchmarked view of what the right seat would cost for your stage and sector, rather than a headline number, tell us what you are working through and we will give you an honest range. For where the role fits before you get to cost, start with what a non-executive director actually does.
