As we enter 2025, board remuneration in Australia is undergoing a significant transformation. The increasing complexities of governance, regulatory oversight, and business strategy require board directors to dedicate more time and expertise to their roles. In turn, this is driving an upward shift in remuneration structures to attract and retain high-calibre talent. In this article, we explore emerging trends, challenges, and best practices in board remuneration, and how organisations can align their compensation strategies with industry expectations.
The Growing Divide Between Amateur and Professional Directors
One of the most notable trends in board governance is the increasing professionalisation of board roles. While board positions were once seen as part-time or honorary roles, today’s directors are expected to bring specialist expertise, undertake continuous professional development, and actively contribute to an organisation’s strategic success. This has created a clear divide between amateur directors, who view board roles as supplementary commitments, and professional directors, who take on board work as a serious career path.
Trends in ASX-Listed Board Remuneration
Historically, some ASX-listed companies attempted to minimise board remuneration, offering as little as $20,000 per annum for roles that involved extensive time commitments, including up to 20 board meetings per year. However, this is no longer sustainable. With increasing regulatory responsibilities, compliance demands, and reputational risks, directors are demanding fair compensation for their contributions.
In 2025, the baseline remuneration for ASX-listed board positions is now around $50,000 at the lower end, with mid-sized listed organisations offering between $80,000 and $100,000. Chair positions and committee roles often command double these figures, reflecting the additional responsibilities they entail.
According to the Governance Institute of Australia’s 2024 Remuneration Survey, around half of all board directors saw increases in fixed remuneration, with private sector and ASX-listed board members experiencing an 8-9% uplift. Senior executives transitioning to board roles are also seeing competitive pay structures aligned with their expertise. (Governance Institute Report)
Private Sector Boards Leading the Charge
In contrast to ASX-listed companies, the private sector is setting new benchmarks for board remuneration. Businesses with turnovers between $10 million and $50 million are aggressively competing for top-tier board talent, often offering starting board fees of $50,000 to $60,000 for a standard eight to ten board meetings per year.
Family offices, in particular, are proving to be one of the most lucrative environments for board members, with remuneration packages of $120,000+ per annum not being uncommon for relatively modest board commitments. These organisations value experienced directors who can bring governance expertise, strategic insight, and industry connections to the table.
Challenges in the Not-for-Profit Sector
The not-for-profit (NFP) sector has long relied on unpaid or minimally compensated board roles, making it difficult to attract top-tier directors. Increasingly, professionals are declining unpaid board positions due to the significant time commitments and potential reputational risks.
Forward-thinking NFPs are adapting by introducing modest remuneration models, reimbursing professional development expenses, or funding memberships in governance organisations such as the Australian Institute of Company Directors (AICD). This shift allows NFPs to maintain high-calibre governance while ensuring financial sustainability. Reducing the size of boards while compensating directors more effectively is also emerging as a viable strategy.
Best Practices for Board Remuneration
For organisations looking to optimise their board remuneration strategy, it is essential to align compensation with best practices. The following recommendations can help ensure fairness, competitiveness, and sustainability:
- Benchmarking Against Industry Standards
- Aligning Compensation with Responsibilities
- Offering Additional Incentives
- Structuring Advisory Board Remuneration Separately
- Maintaining Transparency and Fairness
- Incorporating Cash Components for Startups
How Tiger Boards Supports Board Candidates and Organisations
At Tiger Boards, we specialise in helping board candidates navigate the evolving board remuneration landscape while assisting organisations in structuring competitive compensation packages to attract top talent. Our services include:
- Board Search & Advisory Services: Connecting organisations with highly skilled board directors (Tiger Boards Board Search).
- Board Portfolio Development: Helping professionals build a strategic and financially rewarding board career.
- Remuneration Benchmarking & Advisory: Providing data-driven insights into fair and competitive board pay structures.
For those considering board roles or looking to refine their board search strategy, visit our Tiger Boards website or schedule a consultation via Calendly.
Final Thoughts
Board remuneration in Australia is evolving to reflect the increasing responsibilities and complexities of directorship. While ASX-listed companies are improving their pay structures, the private sector continues to lead in recognising the value of governance expertise. The not-for-profit sector is also adapting, offering new incentives to attract high-calibre board members.
For executives transitioning into board careers, patience and strategic planning are essential. Those who build their board portfolios with a focus on governance excellence, professional development, and long-term value will ultimately reap substantial financial and professional rewards.
As we navigate 2025, the key takeaway is clear: board remuneration must align with the growing demands of governance, strategy, and risk management. Those who recognise and adapt to this shift will emerge as leaders in the boardroom.