The New Thinking on NED Careers

A decade ago, reaching the C-suite was not regarded as a final career stop for the ambitious executive. Leveraging long experience, they might typically move on to become a Chair or non-executive on several company boards. They might continue to work six-day weeks throughout their 60s and even their 70s.

Today, experienced executives have other ideas. Some are opting, at least partially, to follow the siren call of unfulfilled ambition, often in unrelated fields such as the arts, sports or charities. One Odgers client, a former national-level hockey player who had spent four decades climbing the corporate ladder decided to limit his NED engagements to a couple of months per year, so he could compete in veteran sports events. He is far from alone.

Senior executives who are having doubts about whether to take on multiple board roles should consider alternatives. These can be flexible and acceptable as career choices and executives should honestly appraise their own prospects, motivations and energy levels.

Ultimately, it comes down to authenticity in leadership – being true to oneself and setting an example for others. There is no right-or-wrong, and it’s not an ‘all or nothing’ choice. In many cases these external interests can make an individual more rounded and can improve the contribution they make at a non-executive level.

A blend of internal and external factors are at play.

The final balance. “First and foremost, the decision comes down to money,” says a Board expert. Have I saved enough to provide for family and emergencies? Even high salaries and generous pensions don’t guarantee financial security. Of course, everyone’s family situation is different. But for the mortgage-free empty-nesters with big pensions, the decision to explore radical life change may be just a little easier.

Health matters. Given the enormous and sustained pressure that senior executives are under, Chair roles can take both a physical and mental toll. According to a recent Deloitte survey, “nearly 70% of the C-suite are seriously considering quitting for a job that better supports their well-being.” Moreover, “81% of the C-suite say that improving their well-being is more important than advancing their career.”

A time to ‘give back’. Many senior executives aspire to ‘give back’ or work for a better world, leveraging ESG credentials to run, say, a charity. For example, Unilever’s ex CEO Paul Polman became a climate activist. Others go part-time, balancing some corporate responsibilities with charitable or social activity.

Deeper reflections. The Covid-19 pandemic made people question life’s priorities. Today, many executives have reverted to former routines, but deeper questions about how long and hard they really want to work, persist. The rise of flexible and remote working opened the way for lifestyle changes in a post-Covid world.

Generational change. As a new generation reaches the boardroom, ideas around work-life balance, career breaks, part time and portfolio working have become mainstream. While it’s true that baby-boomers prevail in many boardrooms, Gen Xers, Millennials and Gen-Z are either becoming NEDs themselves or influencing attitudes to work.

Burdens of office. A board role now comes with far greater legal and regulatory obligations, requiring more skills and responsibilities. A Chair or NED position may still be prestigious but it’s no sinecure; less ‘rite of passage’ and more personal choice. “I’m 70, but I’m working as hard as when I was 50”, says one Chair and NED in several UK and Irish companies.

The technology hurdle. Executives face a new and daunting challenge: understanding how AI is likely to reshape the corporate world. Many white-collar skills are being redefined and possibly eliminated. Odgers’ own board surveys highlights the need for leaders to develop new, AI-driven tech skills. A radically changing workplace might be one more reason not to take on yet more senior roles.

Ultimately, non-executive careers are becoming more personal, shaped by individual priorities as much as professional drive. For boards, we see greater emphasis placed on highly-tailored searches that prioritise complementary skills, cultural fit and the real impact. Identifying the right NED for the right role has never been more critical.