Remuneration and Earnings of Independent Directors

By Admin on 2025-08-23

Independent Directors are compensated for their time, expertise, and responsibility, but cannot be given stock options. Their remuneration usually includes sitting fees for attending board and committee meetings, reimbursement of expenses, and profit-linked commission (subject to board and shareholder approval). According to the Companies Act, companies may pay sitting fees up to a prescribed limit, typically ranging between ₹50,000–₹1,00,000 per meeting in large companies. The compensation must not compromise the independence of the director. While remuneration is important, many professionals choose the role for its prestige, contribution to governance, and opportunity to influence corporate strategy.

📌 Example: An Independent Director in a mid-sized listed company earns ₹75,000 per board meeting and attends 8 meetings a year. In addition, she receives reimbursement for travel expenses since she lives in another city.