Benchmarking non-executive director fees for a mutual with no listed peers

Build it from time commitment rather than from market position. We counted days: board, committees, regulator meetings, preparation. It came to 55 days a year for a director and 110 for the chair. Dividing the fee by days gave a day rate that members could compare with what the organisation pays senior professional advisers.

On that basis our fees were clearly low, and the increase of 18% phased over two years went through the annual meeting with 89% in favour. The listed comparison appeared only as a footnote.

Separate the skills problem from the fee level. We kept base fees modest and raised committee chair fees sharply, risk and audit to A$40,000 each, because that is where the specialist directors carry the load. It cost a third of what an across-the-board rise would have.