Company directors are working longer hours with little to no pay increase, the latest Directors’ Fees Report has found.
The report, produced by the Institute of Directors (IoD) and Ernst and Young (EY), gathered data from 4077 directorships held by 1148 IoD members across 1752 organisations.
The report has revealed that the average number of hours worked by directors has jumped to 178 hours annually, up from 132 hours in 2023, as boards keep pace with the rising economic pressures. Meanwhile, the median fee for non-executive directors shrank from $52,000 in 2023 to $50,000 this year.
IoD general manager of learning and engagement, Dr. Michael Fraser, said that the dual challenges of fee pressure and growing demands on time were constant realities directors had to face regularly. For the second year in a row, the top reason for declining a governance role has been the commitment of time required.
He said directors were also encountering more complex tasks with a heightened focus on issues like climate change, technology, and greater management support needs. Roles were further complicated by geopolitical uncertainty and the legal risks associated with personal liability.
Moreover, the survey showed a widening pay gap between women and men directors, with men receiving a median annual pay of $50,000, while women earned $45,000—a $5,000 difference, up from a $3,800 gap the previous year.
EY partner Una Diver said female respondents were more likely to hold lower-paid positions, often serving on the boards of smaller organisations.
“However, it is disappointing to see the gender pay gap grow in our flagship statistic.”