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- Those who see board roles primarily as a way to boost their income may be underestimating the demands of the job.
- A meaningful board career starts with understanding where a board needs value and what you can bring to the table.
- Perhaps the best measure of a director is not what they take from the table, but what they contribute to it.
Board roles are often portrayed as comfortable side gigs – a useful cash top-up for those with the right connections. But that view misses the responsibility, accountability and work that comes with being a director.
In a tight economy, a well-compensated board position may seem like a financial lifeline.
The AICD’s 2025 Director Remuneration Report, in partnership with Godfrey Remuneration Group, found payment packages could reach a median of $105,000 for non-executive directors and $180,000 for chairs.
It is perhaps these figures that have prompted an anecdotal rise in directors actively seeking advice about how to secure a paid board seat as a solution to top up their incomes.
“I recently had someone say, ‘If I could just get two boards at $100,000 each’,” says Christine Khor, CEO and founder of Peeplcoach, a leadership development and coaching platform, and national board member of The Hunger Project Australia.
“But a great board director considers how they add value to the organisation, not only the financial reward or how the role will look impressive on their resume.”
Not just a top-up or retirement bonus
Historically, board membership was seen as a side hustle or a retirement reward, because those positions were taken by male veterans or baby boomers who had retired from senior executive roles, says management consultant Avril Henry AM GAICD, who has held multiple private sector NED roles, including as chair.
But with greater diversity and a changing business environment, this idea is outdated, she says.
The incorrect perception of board seats as a side hustle may persist because, from the outside, governance can appear less demanding than executive leadership, says Jason Johnson, founder and CEO of Johnson Partners, who has overseen more than 500 chair and non-executive director appointments.
“Candidates who pursue board roles primarily as an income supplement often underestimate the role,” he says. “While director remuneration can be attractive, the fee is ultimately compensation for substantial responsibility rather than attendance.
“People see quarterly board meetings and director fees, but they don’t see the preparation, accountability and fiduciary responsibilities that sit behind those meetings.”
Says Henry, “Work on boards can involve reading hundreds of pages of board papers, reviewing risk reports, challenging assumptions in board papers where a new project is put forward for approval, and evaluating management and their performance.”
Khor says she can spend several days reading board packs and preparing for a meeting. “Then there’s the time you may put into subcommittees or into upskilling to ensure you’re adding value.”
Greater risk, greater responsibility
A board seat also means serious and significant fiduciary duty, balanced against financial reward.
Directors must contend with increased compliance controls from ASIC, APRA and the Reserve Bank, says Henry, with pressure in terms of financial reporting obligations, workplace health and safety, ESG and sustainability reporting, anti-bribery and anti-corruption regulations, employment and discrimination, and cybersecurity intensifying.
“Being a board member is not about reading a couple of reports and attending a board meeting anymore.”
Should board directors fail in their governance duties, evolving social and legal environments mean they face even greater financial and reputational risk than before, says Khor.
“You may be receiving $100,000 for a board position, but you’re also financially and legally liable for the operations of that business, for example, the safety or conduct of your employees. Consider some of the behavioural scandals currently in the news.”
Says Johnson, “Today’s directors are operating in an environment shaped by cyber threats, AI, heightened stakeholder expectations, regulatory scrutiny and rapidly changing market conditions. The complexity of the role has doubled."
Finding the right fit
Understanding what a board needs, and how you can deliver value rather than simply evaluating financial reward, is the first step to purpose-driven directorship, says Khor.
The best directors are motivated by contribution, stewardship and the opportunity to help shape an organisation’s future.
“A board seat is one of the few opportunities in a professional career where you can influence strategy, culture, leadership and long-term outcomes without being involved in day-to-day management,” says Johnson.
With more risks coming from the areas of corporate culture, such as diversity and inclusion, those with a background in human resources management, rather than traditional fields such as finance, should also aim to have a seat at the table, suggests Henry.
“My dream board is one where it’s 50/50 male and female, because that’s the population of the country, and you have at least one person under the age of 35 who has a strong understanding of new technologies and social media,” she says.
Making sure your values align with a company, or organisation is another way to ensure you’re in the right position to contribute, not just collect a paycheck.
Unmatched rewards
Yes, directorship pays, but it also strengthens understanding of strategy, governance, risk management, stakeholder engagement and long-term value creation, says Johnson.
“Many executives return to their day jobs with broader commercial perspectives and improved decision-making capability.”
For a board member like Khor, whose role is voluntary, the payoff is “knowing I’m doing something to help end world hunger and support women to create more sustainable lives for themselves and their families”.
Building professional and social networks, as well as intellectual growth, are other benefits.
Ultimately, perhaps the best measure of a director, though, is not what they take from the table, but what they’re prepared to put on it.
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