Many company directors have seen their fees fall but their workload increase as a result of the Covid-19 pandemic, according to a new survey.
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The Institute of Directors (IOD) and business advisory firm, EY, annual survey done in May showed about 40 percent of organisations either stopped paying fees or reduced them because of the pandemic.
IOD general manager learning and branch engagement Michael Fraser said the pandemic had put boards under more pressure, lifted the risk and challenges to businesses, and resulted in directors working harder for longer.
"This virus is the biggest test many boards have faced and directors will be closely watching their organisation's cash position and solvency. Directors have to exercise courage in decision-making while putting health and wellbeing first."
Hours worked for non-executive directors rose from 169 in 2019 to 176 with more than half of directors reporting an increase in the amount of time spent on company business, but the average fee rose just 0.8 per cent to a median $46,700.
Board chairs fared better with their median fee rising 3.6 percent to $60,000.
Fraser said New Zealand directors' fees were low and many directors did the job for "passion or purpose".
Una Diver, EY Partner people and advisory services, said the amount directors were being paid was not keeping pace with their work, with directors having to cope with rebalancing their capital and costs, and looking after staff.
"The experience of our governance community is mirroring the experience of the wider economy and I think there are many directors who are conscious of the fact that they want to do it harder than the workforce's of the organisations that they're on the board of."
She expected the gap between pay and workloads for directors would remain wide over the coming year.