One of Europe’s largest activist investors, Cevian, has called for higher pay for non‑executive directors in UK boardrooms to revive growth at British companies and reverse the decline of the London market.

The activist, with stakes in Smith & Nephew, Pearson and Vodafone, says NED pay should triple, proposing a base of £240,000 including share‑based awards held for five years, up from the current £80,000.

Cevian notes that S&P 500 directors earn about £229,000, two‑thirds in shares, while Swiss firms pay 90% more than UK peers. The higher remuneration would allow directors to buy shares and align interests, a point echoed by Harlan Zimmerman.

Critics argue board duties have grown, yet NEDs sit on too many boards, leading to over‑boarding. Support from the London Stock Exchange Group CEO, David Schwimmer, and calls for meaningful equity ownership underscore the debate. Cevian’s recommendations stem from discussions with investors and UK chairs. The Investment Association encourages share ownership but cautions against performance‑linked pay.

Cevian’s analysis found 47 FTSE 100 NEDs with four board seats and eight with five or more. Pippa Begg warned that underfunding and low pay drive over‑boarding, making it harder to attract top talent.