Remuneration information is sourced from annual reports, and our analysis assumes that individual board members served for the full year under review. This approach ensures that our calculations are as accurate as possible. We also analyse actual remuneration paid out, taking into account fluctuations arising as board members assume additional duties during the year. Our research examines the most recent fees, which usually relate to 2024 fees signed off by the board and not the 2023 payout fees.
Our analysis again provides insights into remuneration practices for chairs, non-executive directors, and senior independent directors, including discussions on base fees, total compensation, and additional fees for committee work.
This year 45% of boards have increased their non-executive director (NED) retainer fees, with rises ranging from 5% to 50%. Almost half of the ISEQ 20 companies have increased their NED fees, once again citing the importance of competitive executive remuneration in attracting and retaining the talent needed to support business objectives. Irish companies face challenges from higher paying markets like the UK and US. Recent delistings from the likes of Flutter, CRH and Smurfit Westrock compound this issue along with payment gaps in the banking sector.
Chairs
Continuing the trend seen in recent years, all ISEQ 20 chairs received a single fee without any further top-ups for additional duties such as chairing board sub-committees. Average chair fees range from €130,000 to €422,000. However, remuneration structures are notably varied, with 85% of chairs receiving their fees entirely in cash. For the remaining 15%, at FD Technologies, Malin, and Ryanair Holdings, fees are dispensed in a combination of cash and shares. This mixed compensation approach helps to incentivise alignment with shareholder interests and fosters long-term commitment to company performance.
In 2024, the average chair fee stands at €264,840, representing a 3% drop from last year’s average of €273,063. This decline reverses the slight 2.4% increase noted in chair fees last year, but it is in keeping with the wider five-year trend apparent since the first Ireland Spencer Stuart Board Index, in 2020.
The average chair fee has dropped significantly from the €292,059 recorded in 2020, marking a 10.3% decline. This reduction reflects the influence of several factors, including the delisting of notable ISEQ companies such as Aryzta, CRH, and Flutter, which previously commanded some of the highest chair fees. The 2021 delisting of Total Produce, which had an executive chair, as well as the transition of an executive chair at Glenveagh, contributed to the shifts in the reported figures across the relevant five-year period.
Since our first edition, companies such as AIB, Bank of Ireland, and Origin Enterprises have held their chair fees steady, without any increases, while fees have doubled at companies such as Ryanair and Greencoat Renewables. Glanbia also demonstrated significant growth in chair fees.
Overall, these trends underscore the ongoing adjustments in board remuneration practices as companies navigate the changing economic landscape, balancing the need for competitive compensation against broader market pressures.
Average chair fee including executive chairs (€000)
Senior independent directors
Every board in our sample had a senior independent director. Only 10% of the ISEQ 20 did not pay any additional fee for the Senior Independent Director (SID) role. Most ISEQ 20 SIDs received an additional fee on top of their basic non-executive director fee, with 90% of companies opting to pay this additional fee entirely in cash. Malin pays a combination of cash and shares, and FD Technologies pays its SID exclusively in shares.
The average additional SID fee has dropped to €17,242, reflecting cash-only fees, down from last year’s average of €21,998, with fees ranging from €5,000 to €64,896. The total cash payout to SIDs stands at €116,020, representing an 12.4% increase in SID fees compared to the €103,204 noted last year. This year’s increase reflects a positive trend in overall SID compensation, which has risen consistently during the past five years.
Overall, while the variety seen among remuneration structures highlights the strategic significance of the SID role, the recent increase in total payouts underlines an ongoing commitment to recognising SID contributions, highlighted in our five-year tracking of this trend.
Non-executive directors
The average retainer fee for NEDs has risen to €79,655, a significant increase from €70,943 in 2023 and representing a cumulative growth of approximately 11.6% over the past year. This trend has been consistent since 2020, reflecting a total increase of 17.8% in NED compensation.
While NED retainer fees continue to rise, remuneration continues to span a diverse range, from €50,000 to €150,000. Companies such as FD Technologies, which pays its NEDs a €150,000 each, significantly exceed the median range, reflecting a commitment to competitive governance practices. In contrast, companies such as AIB and Bank of Ireland, both maintaining fees of €65,000 and €75,000, have made only modest increases, if any, to their retainers in recent years. Such variations highlight the different strategies that govern NED remuneration among ISEQ companies, and their approach to attracting and retaining board talent.
Committee and chair fees
The majority of the ISEQ 20 companies pay additional fees for extra responsibilities, such as chairing committees. Only two companies, FD Technologies and Irish Continental, do not pay a chair fee for their audit or remuneration committees. In the case of nomination committees, 11 companies provide a chair fee, and two companies do not pay a fee for remuneration committees. All boards that maintain a risk committee pay an extra fee to the committee chair.