What is the time commitment for a NED?

f you are considering a Non-Executive Director role as your next career step, you may also consider the time commitment involved. This should not be overlooked, particularly for those holding a full-time executive role. Being a Non-Executive Director (NED) is time-consuming, especially in the first few months of a new appointment or when unpredictable events occur. The role of a NED extends far beyond simply preparing for and attending scheduled board meetings.

The role of a NED does not come with set hours

The working hours of a non-executive director are very different from those of executive directors and sometimes unpredictable. While there’s no set number of working hours, NED members are usually expected to devote several days a month to the role.

The role of a NED includes formal commitments such as attending board and sub-committee meetings. Exactly how many hours this involves will vary with each board and the nature of the business they conduct. For example, some boards have a set agenda to meet monthly, whilst others may meet every three months. There may also be the occasional emergency board meetings when required. Of course, you can not predict these events, but due to the urgent nature of the matters that require the board’s attention, it is important that you are available to attend.

Your NED role may also include chairing or participating in a sub-committee. While these meetings usually follow set dates, they will likely meet more regularly than the board they report to.

Then, you need to consider the informal or covert commitments of a NED. These time commitments include preparing for board meetings, travelling to board meetings, researching, communicating with and advising board members outside formal meetings, representing the organisation at events, and governance training.

Let’s review a NED’s actual time commitments to a role

Preparing for board meetings

For NEDs to perform competently, thorough board meeting preparation is essential. Board meeting packs often extend to several hundred pages and contain substantial amounts of data. Reading these documents, let alone comprehending, researching and analysing their contents, can take many hours. Therefore, the preparation time for even short board meetings can be considerable.

The amount of time you spend preparing for each meeting will vary based on your knowledge and experience and the nature of the issues being addressed. If you have solid knowledge and are up to speed with the issues outlined in the board meeting pack, your preparation time might seem completely manageable. However, be prepared for other board members to call on you for advice.

If you are not across all the issues, it is your duty as a director to get up to speed. This may involve conducting research, referencing other resources, and talking to your co-board members or industry experts. Your time management abilities may also impact the time you have to commit; however, preparation for each board meeting could take anywhere from a couple of hours to several days.

External or informal meetings with board members

Many NEDs will say the actual decision-making process happens outside of formal board meetings. Instead, fundamental opinions that form the basis of their formal decisions are often established during informal meetings between board directors. These meetings happen before the formal board meeting, with the formal board meeting ratifying the group decisions. So expect to be included in these conversations and consider the time they may take out of your schedule.

Travel to meetings

Despite the popularity and acceptance of virtual meetings, many boards and board chairs prefer all formal board and committee meetings happen face to face. Whether you are an experienced or developing NED, you are likely to learn more about the role, the organisation and your co-board members by attending in person. So, travel to board meetings should always be expected. Depending on the meeting location, you may need to block half to a full day from your calendar.

Developing governance skills and other skills

Good NEDs don’t rest on their laurels. Many take on the role so that they can continue to learn and develop new skills. Many NEDs believe that developing their governance skills is vital to ensure that they protect themselves from the risks associated with the role. Other skills NEDs should consider developing outside of the boardroom are financial, IT, risk management and cybersecurity skills. For example, all Directors must sign off on annual financial accounts, reports and statements. NEDs should be confident that they have adequate financial skills to do so.

The board meeting itself

It is time to consider the commitment to the board meeting itself. A typical board meets 4-10 times a year, with each meeting usually lasting 3-4 hours. You may also sit on a sub-committee, which may require a meeting every month for 2-3 hours each meeting.

Other things to consider

Finally, you should consider additional and often incidental commitments. If overlooked, these can accumulate swiftly and lead to a considerable strain on your time. These commitments will vary depending on the type of organisation you represent, but they include attending AGMs and corporate strategy days, representing the organisation at community or industry events, fundraising, and volunteering.

For most, it is worth the time commitment

Considering all of the above, the overall time commitment for a non-executive director is likely to be between 10 to 40 days in 12 months per NED role. Whilst this may seem a lot, particularly if you are maintaining a full-time executive role, most will tell you that taking on a 3-year NED role is well worth the time investment. The fact that NED roles are in high demand supports this.

Studies have shown that people with a NED role in conjunction with an executive role are more appointable, earn more, are unemployed less, and have stronger business and professional networks. Essentially the right NED role can provide invaluable strategic experience, access to new networks, help build your personal brand, and provide a pathway to give back or share your executive skills.

Just ensure that before accepting a non-executive position, you identify all possible time commitments the role may incur. This may mean reaching out to current or past board members for clarification. Then, consider your current professional and personal obligations to ensure that you have adequate time. The last thing you want to do for your board career is to perform poorly in a NED role because you underestimated the time involved. Quitting before the end of the term can be just as damaging to your professional reputation.