Recruit A NED Director

Recruit A NED Director

1. Understanding the Context: What Is NED Capital?

In June 2025, FD Capital formally launched NED Capital, a dedicated venture offering executive search services for Non‑Executive Directors and Chairs across UK growth companies . NED Capital builds on FD Capital’s brand in finance-level recruitment and brings board-level caliber, governance insight, and strategic leadership to its clients

Launching from London, NED Capital aims to revolutionise NED hiring—tailoring recruitment to modern board needs, emphasising high‑calibre candidates for SMEs, scaling businesses, and SMEs in diverse sectors .

2. Role & Expectations of a NED

A Non‑Executive Director (also known as NED or independent director) is not part of day-to-day management but is a full board member with key legal duties. They provide independent oversight, strategic input, and governance supervision

Key responsibilities include:

  • Contributing to strategy, challenging executive assumptions, and offering external perspectives.

  • Evaluating executive performance and ensuring succession planning is sound.

  • Ensuring the accuracy of financial reporting, risk oversight, and robust internal controls.

  • Applying their networks and special expertise to raise the board’s collective capability.

Well‑reputed frameworks such as the UK Higgs Review—and guidance from bodies like the Institute of Directors—emphasise key attributes such as independence, impartiality, broad experience, and strong personal qualities like integrity and emotional intelligence en.wikipedia.org+1

Remuneration varies by size and sector: typically £20‑30k in SMEs, rising to £50‑60k for FTSE 250 and £60‑80k for FTSE 100 boards, with many nonprofit roles being voluntary en.wikipedia.org.

3. Why Hiring a NED Matters for NED Capital

Though NED Capital is itself a recruiter of board members, appointing an internal NED (or board advisor) could provide:

  • Governance insight: Direct experience of board-level best practice, accountability, and compliance.

  • Industry credibility: Ability to engage candidates and clients as a peer, signalling seriousness around standards.

  • Strategic oversight: Guidance on firm growth, sector evolution, ESG trends, and market positioning.

Embedding a NED internally helps shape NED Capital’s own governance, embedding the conventions it advises clients to adopt.

4. Designing the Search: Define the Brief & Criteria

A robust recruitment process usually begins with:

A. Clarifying Purpose

  • Is the role an advisory NED or Observer position?

  • What committee or governance duties are expected (e.g. audit, nomination)?

  • What is the desired time commitment (e.g. fortnightly, quarterly)?

B. Choosing Desired Profile

  • Experience: Has board-level tenure, private equity exits, sector knowledge in finance, growth, ESG, or technology.

  • Diversity: Gender, ethnic, generational, and experiential diversity are increasingly critical—especially given average UK NED age is ~61, with the youngest often mid‑40s ft.com.

  • Skills: Passion for governance, strong challenge style, network leverage, communication and emotional intelligence.

C. Culture & Values Fit

  • Alignment with NED Capital’s values: client focus, entrepreneurial drive, London/global context.

  • Compatibility with founder-led, growth‑oriented culture.

D. Remuneration & Logistics

  • Define whether the role is pro bono/trustee-style or a paid part-time seat (£X per annum).

  • Specify duration, review cadence, and expectations around confidentiality and representation.

5. Sourcing & Engaging Candidates

A. Executive Search Firms

Partnering with specialist NED recruiters can boost quality and reach. Leading options in London include:

  • Exec Capital (FD Capital spin‑off) – strong NED and Chair capability

  • First Flight Non‑Exec – devoted solely to Chairs, NEDs and Trustees across corporate and not‑for‑profit

  • Sapphire Partners – prioritise diverse talent pipelines across sectors and board practice

B. Networks & Referrals

Over 90% of NED appointments come through word-of-mouth, referral or sector networks. Participating in or inviting candidates from:

  • The Macildowie NED Network, an invite-only free platform sharing roles & events

  • IoD, 30% Club, Women on Boards, FT Board Director Programme for pipeline and visibility

C. Pro‑active Outreach

Identify former executives, entrepreneurs, or ex-governors whose leadership aligns with NED Capital’s strategy and outreach privately or through platforms like LinkedIn.

6. The Selection Process

A. Paper & CV Review

Shortlist for relevant board exposure, industry breadth, independent thinking, diversity and governance training (e.g. IoD accreditation)

B. Structured Interviews

Interviews should assess:

  • Strategic insight and challenge‑style.

  • Risk and governance understanding.

  • Cultural fit and potential contribution to future NED Capital growth.

A practical task or case study (e.g. governance scenario) can help illustrate real‑world thinking.

C. Reference & Peer Feedback

Contact referees able to testify to boardroom conduct, questioning style, independence, and tangible value added.

D. Formal Board Board-Member Interview

Invite key founders or senior leadership to meet. Evaluate fit across values, chemistry and alignment.

E. Onboarding & Charter

Once appointed, agree terms in a formal role charter: scope, responsibilities, meeting schedule, confidentiality, remuneration, liability insurance / indemnity, exit procedure.

7. After Appointment – Maximising Value

  • Provide access to annual training via IoD or FT Board Director Diploma.

  • Include attendance at relevant board workshops (governance, ESG, cybersecurity).

  • Conduct periodic evaluation of board effectiveness, including self‑assessment and peer feedback

  • Leverage NED networks to promote NED Capital’s brand and pipeline quality.

8. Common Pitfalls to Avoid

  1. Token appointments – Avoid selecting someone just for prestige. Ensure meaningful contributions.

  2. Underpowered brief – Weak clarity leads to misalignment.

  3. Bias in sourcing – Relying only on old contacts or like‑minded networks may limit diversity.

  4. Missing independence – NED must not be financially dependent or too close to executive management.

  5. Poor onboarding – Without orientation and access to materials, a NED will struggle to be impactful.