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The debate over compensating directors in the not-for-profit (NFP) sector is growing as governance complexities and time demands increase. The AICD’s 2023-24 Governance and Performance Study reports that 21% of NFP directors are now paid, up from 14% five years ago, but most remain unpaid.

Rising regulatory requirements, especially in sectors like aged care, are pushing some boards to consider remuneration to attract skilled professionals and improve governance. Advocates argue that paying directors can enhance accountability and diversity, particularly for those with lived experience.

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Olivia Mitchell