Are your INED fees back to the 90s ?

​​HKMA suggests the basic fee of independent non-executive directors (INED) should be at least HK$400,000 per year. However, current INED fees generally remain at levels obtained back in the 1990s. This has discouraged some qualified talent to take up the roles. 

​Independent non-executive directors (INED) play a crucial role with the organization. They shoulder significant responsibilities in supervising corporate governance and protecting interest of shareholders. However, INED fees generally remain at similar levels obtained back in the 1990s, according to Anthony Fan, the Founding President of the Hong Kong INED Association. This has discouraged some qualified talent to take up the roles. To properly reflect the responsibilities of INED and enhance talent attraction and retention, it is crucial for companies to conduct market benchmarking of fee levels of INED on a timely basis instead of simply adjusting the fees based on annual inflation.

Pretium advises Remuneration Committee of listed companies on INED fees and executive compensation on an on-going basis. We conduct annual benchmarking analysis of fee levels and structure of INED for 64 Hang Seng Index Constituent Companies. This study provides companies with the market fee levels of INED in 3 different categories (Basic fee, Committee fee and Total fee) and 5 industry fields (Financial Service, Real Estate, TMT, Commerce & Industry, and Utilities).

With this report, you can: 

  • Obtain the market data of basic fees received by INEDs;
  • Differentiate INED fees with basis on INEDs' specific roles within the Board;
  • Understand the application of long-term incentive vehicles in different regions, such as Hong Kong, the United States, and the United Kingdom, for INEDs

​Customized analyses based on selected benchmark groups in different industries can be made available upon request.
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