Have you ever thought of being a Non-Executive Director (NED) in the UK? It's tough as old boots to get in unless you are one of the old school tie brigade or risen nicely in a well named company.
Once you're in, it's equally tough to get back out and in fact many NEDs sit on the Board of between 7 and 10 companies while supposedly doing a day job.
It's little wonder that Royal Mail continues to languish in no-man's land when their sparkling Chairman, Allan Leighton, shuttles between 8 other companies and still gets home for tea each day.
Obviously, their roles are not day to day ones and usually require no more than 1 or 2 days a month if that, generally listening to well-prepared management-speak on the company performance beautifully phrased and presented to deflect any nasty questions about how the company is actually doing. The art of the NED is to look as interested as possible, ask a few non-specific questions, name drop some names you may or may not call in search of some contacts and have your free lunch.
And the money isn't bad. Depending on your 'glitter' factor you can command a very happy living as an NED - usually in the form of flat fees and some companies offer maybe a few shares or stock options.
So Get This
Electric power and fibre optic cable maker, Volex, has just proposed a long term incentive scheme for its NEDs. Principal beneficiary is the newish Chairman but a small host of other 'lottery winners' get at the trough and some with little or no experience of the power or cable market like an ex-HP UK Director who joined the Board last year. They stand to split a £2m pot if they can increase the share price more than eightfold in 3 years.
Quite how they are going to do this on a couple of days a month is very curious, but it may set a new pattern of NED bonanzas for those in the tight old network.
I am sure, in these austere times, the workforce will be delighted to hear that a bunch of well-paid NEDs will bear the fruits of their labours for so little commitment - but let's be honest, if there's no money in banking how else are the poor lambs going to earn their crusts
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