DIFFERENCE BETWEEN NON-EXECUTIVE DIRECTOR AND MENTOR

When a founder experiences feelings of being lost, isolated, lonely, confused, or concerned, where do they seek support? Should they turn to friends, family, their accountant, or lawyer?

Are these individuals truly the best equipped to provide assistance, listen, offer advice, and help develop the founder and their team? Probably not, so what are the next steps?

If you aspire for your child to become a top tennis player or elite gymnast, professional coaching is necessary once parental guidance has reached its limit. Similarly, to drive a founder, CEO, managing director, or board towards peak performance and success, it is essential to appoint a Mentor or Non-Executive Director (NED). But what distinguishes the two roles?

The age of the founder or CEO generally influences this decision. Typically, founders between the ages of 18-25 engage a mentor. For those between 25-45, both a Mentor or NED are common options. Once over 45, a NED is often preferred as mentors are subconsciously perceived as better suited for younger, less experienced business leaders.

Although a non-executive director (NED) and a mentor have distinct responsibilities, a NED can sometimes serve a mentoring role to the board of directors.

  • A NED’s role is to help the company as a whole, while a mentor’s role is to help a specific individual.
  • The daily rates for NEDs can vary widely depending on the industry and the size of the company. On average, NEDs in the UK can expect to earn between £500 to £2,000 per day. High-profile or highly experienced NEDs may command even higher rates.
  • A NED’s focus is on the company’s governance, brand, and strategy, while a mentor’s focus is on the mentee’s personal development.
  • Relationship
  • A NED is not an employee of the company, but a mentor typically supports a key individual, such as an executive.
  • A NED may provide guidance through informal communication, such as phone calls. A mentor may set short and long-term goals for the mentee.
  • In a start-up company, a NED may act as a business mentor, providing guidance and emotional support. A NED’s diverse experience can bring new perspectives to the company, helping with strategic planning and problem-solving.

On the other hand, a mentor is someone who provides;

  • Guidance, advice, and support to an individual, often in a professional or personal development context.
  • Mentors share their knowledge, experience, and expertise to help the mentee grow and achieve their goals.
  • The relationship between a mentor and mentee is typically more informal and personal compared to the formal role of a NED.
  • Mentors focus on the mentee’s development, offering insights, feedback, and encouragement to help them navigate their career or personal challenges.
  • The daily rate for a mentor is typically lower than that of NED and may even charge on a block of hours basis ranging from £100- £165 per hour.

In conclusion, NEDs guide a company’s governance and strategy, while mentors focus on individual personal and professional growth. Feel free to ask if you need more details or have further questions!

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