Does your company Board set any requirement for NEDs to hold shares in the company? Is there a minimum or maximum limit – and if so, how is this number determined?
No, we have no NED shareholding requirement but exploring about putting in place a monthly share purchase plan which NEDs could join.
FTSE250said
We have no policy around NED shareholding requirements – they are encouraged to build a small holding – and usually do. The holdings tend to remain modest.
FTSE SMALL CAPsaid
We do not have a formal policy but it is generally encouraged by the chairman and is typically around the £10k to £20k level
FTSE100said
We require our NEDs to use a portion of their fees to purchase shares. A post tax and NI amount is deducted on a monthly basis and shares purchased once a year. These shares are held in a nominee and the NED is not permitted to sell them during their tenure. Current requirement is £10k per annum with a higher amount for the Chair.
Notwithstanding this requirement we often find the NEDs feel they should and indeed do invest more in the company.
FTSE250said
No formal requirement but there is an “understanding” they should be shareholders. Level of investment low – usually around £10k – £15k vs £50kpa fees
FTSE250said
This is unusual and entirely voluntary. We do not currently have a requirement and neither did the previous business I worked for. Clearly NEDs having a small holding is seen positively but anything substantial can attract questions about independence.
FTSE SMALL CAPsaid
Our NEDs need to hold a minimum of 50% of the value of their annual salary by the third anniversary of their appointment.
I was previously at a FTSE 100 where there were no requirements at all.
FTSE250said
We do but our NEDs volunteered for it when we were reviewing our policy. I believe it’s still relatively unusual.
We recently recruited a French national onto our Board as a NED and he was pretty shocked!
No, we have no NED shareholding requirement but exploring about putting in place a monthly share purchase plan which NEDs could join.
We have no policy around NED shareholding requirements – they are encouraged to build a small holding – and usually do. The holdings tend to remain modest.
We do not have a formal policy but it is generally encouraged by the chairman and is typically around the £10k to £20k level
We require our NEDs to use a portion of their fees to purchase shares. A post tax and NI amount is deducted on a monthly basis and shares purchased once a year. These shares are held in a nominee and the NED is not permitted to sell them during their tenure. Current requirement is £10k per annum with a higher amount for the Chair.
Notwithstanding this requirement we often find the NEDs feel they should and indeed do invest more in the company.
No formal requirement but there is an “understanding” they should be shareholders. Level of investment low – usually around £10k – £15k vs £50kpa fees
This is unusual and entirely voluntary. We do not currently have a requirement and neither did the previous business I worked for. Clearly NEDs having a small holding is seen positively but anything substantial can attract questions about independence.
Our NEDs need to hold a minimum of 50% of the value of their annual salary by the third anniversary of their appointment.
I was previously at a FTSE 100 where there were no requirements at all.
We do but our NEDs volunteered for it when we were reviewing our policy. I believe it’s still relatively unusual.
We recently recruited a French national onto our Board as a NED and he was pretty shocked!