Non-executive directors in independent publishing 

The IPG recently conducted a survey of the use of non-executive directors in independent publishing, and we’re grateful to members who took the time to complete it. The results gave us a very interesting picture of the extent and value of non-execs in our industry; here is a short summary of the results and comments.

Use
Of members with non-executive directors, numbers range from one to 12, with an average of just over three.

Pay and benefits
Just under half (49%) of businesses pay their non-execs. Annual payments range from £1,000 to £18,000, with an average of just over £8,000. The same proportion (49%) pay expenses, and some provide other benefits like books. Just over half (53%) of non-executive directors are also shareholders in the business.

Recruitment
Personal networks and investors are the two most common sources of non-execs. Other avenues include headhunters, services like the Directors Centre and NEDonBoard, former employees, authors and advertising. (Remember you can advertise for any position for free on the IPG jobs board).

Onboarding and communication
Only one in six (16%) businesses provide some kind of onboarding or training for non-execs. Communication frequency varies widely, but is usually at least quarterly and more often monthly

The benefits of non-execs: members’ comments
‘Our non-executive directors bring fresh eyes to situations and bigger company experience. They ask the difficult questions and make us think about all aspects of our business in new and different ways. Often their ideas will spur us into new ways of thinking that we may or may not have got to on our own.’

‘They offer business acumen and benchmark us against other businesses in and outside publishing’

‘A NED is able to bring wide business experience to bear. They help us to see company strategy in a broad context, advise on and sometimes secure strategic partnerships, support the MD as a confidential sounding-board, advise on acquisitions and compare KPIs and metrics with other organisations in their experience.’

‘It gives us the discipline to stand back from the day to day and look at the bigger picture. We like them to challenge us and help us think strategically. Discussion can help to air a difficult decision or an internal dilemma. They are part of good governance: we are responsible to our shareholders and their involvement is therefore important.’

‘It is great to have a sounding board for the business side. Our non-exec doesn't get involved with the publishing side of the business: we just discuss sales and how the business is doing from a financial point of view. This helps keep the business on track because financials don't ever get forgotten about.’ 

‘They provide experience, guidance, an independent view and health check in all parts of the business as well as great support.’

‘They’re a sounding board and a sense check. Their experience elsewhere and previously is really useful for analysis and strategic planning.’

‘They bring vast experience in our sector and industry connections, and boost our profile and reputation.’

‘Two of our non-execs are share-owning family members, and the other two have specific experience that relates to areas of the business such as governance, academia and running and growing an SME. This is an invaluable support.’

‘We see them as 'critical friends' to the business.’

‘They’re a useful sounding board and a very useful reminder that we should do some formal planning once in a while.’

‘One is almost part of the team and very involved in business development. The other offers commercial suggestions at board meetings and will make introductions if necessary.’

‘They’re a proper grown-up sounding board, and not there to tell me what I want to hear. They’re forensic on strategy, growth, marketing, comms and hiring etc, and appointing them was the best thing I ever did for our business.’