Salary survey: Investment trust non-execs pay to rise

Non-executive directors of investment trusts in the UK earn an average of 12,200 (€18,000) a year, a survey shows.

Kim Yates, a consultant at the recruitment firm Principal Search, which carried out the survey, said she believed non-exec salaries at investment trusts are rising and are likely to reach 15,000 in two years time.

The pay rises reflect the increasing workload of non-execs and their potential liability for damages if things go wrong, she said. 'Boards typically meet five times a year and the amount of paperwork that has to be reviewed before each meeting has expanded enormously.'

Principal Search surveyed 156 investment trusts. Other headunters say pay for non-execs in other industries is typically more than 20,000.

Yates said the expected increases at investment trusts would be an overdue correction.

The survey found that investment trusts with more than 500m under management typically pay their non-execs 18,000 and their chairmen 27,000. Trusts with less than 50m under management pay non-execs and chairmen 11,000 and 15,000 respectively.

Yates said there is no shortage of people eager to become non-execs of investment trusts: 'We have a considerable pool of people who are interested in this work. There are a lot of ex-fund managers, senior private client managers, corporate financiers, and legal and compliance people.'