Independent Non Executive Director Fee Study
Are your INED fees back to the 90s ?
The strategic value of Independent Non-Executive Directors (INEDs) in corporate governance and protection of shareholder interest is undeniable. However, as highlighted by Anthony Fan, Founding President of the Hong Kong INED Association, INED fee structures have largely stagnated since the 1990s, failing to reflect the expanded scope and complexity of their responsibilities. To safeguard board effectiveness and secure qualified strategic oversight, companies must change from inflationary fee adjustments to a timely review of INED fee—ensuring it reflects their governance duties and enhances long-term talent attraction and retention.
Pretium advises the Remuneration Committee of listed companies on INED fees on an on-going basis. Our benchmarking of Independent Non-Executive Director Fees examines the market levels of INED fee and structure of 64 Hang Seng Index Constituent Companies. Below are the key focuses of the study:
Categories of fees:
- Basic Fee
- Committee Fee
- Total Fee
Industry Coverage:
- Financial Service
- Real Estate
- TMT
- Commerce & Industry
Key Benefits:
- Design market-oriented compensation: Access data on standard INED fee structures to ensure compensation remains competitive and aligns with prevailing market practices.
- Implement fee differentiation: Develop nuanced compensation frameworks that recognize and reward the varying responsibilities of INEDs serving in specialized roles and committees within the board.
- Enable globally informed incentive design: Gain insights into the long-term incentive models for INEDs across major jurisdictions, supporting the design of localized and sophisticated compensation approaches.
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info@pretium-asia.com
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