Explore how we help
We create a plan tailored to your complex needs
WHO WE HELP
Individuals and families
Your wealth, goals and family priorities
Business owners and entrepreneurs
Your business, wealth and next steps
Corporate executives
Complex income, equity and career transitions
International individuals and families
Life and wealth across multiple countries
UHNW and Family Offices
Significant, complex and multi-generational wealth
YOUR IDEAS & GOALS
Plan for growth
Grow your wealth and open up new opportunities
Live well
Live life to the fullest, today and into the future
Secure your future
Be prepared for whatever may happen
Make a difference
Support the people and causes you care about
WORKING WITH PROFESSIONALS
Intermediaries
Scale, security and investment discipline for your clients
Professional partners
Specialist support to enhance your client offering
Charities
Effective governance, oversight and long-term sustainability
About RBC Wealth Management
Experienced local advisers, backed by global strength
Our offices
Over 30 offices in the UK, Ireland and Jersey
WHO WE ARE
Our history
Generations of clients have relied on RBC Wealth Management and RBC Brewin Dolphin
Awards and recognition
Recognising our service and industry leadership
Leadership
The people guiding our strategy and client experience
SUSTAINABILITY
Responsible investing
Our approach to responsible investment
Community involvement
Supporting communities where we live and work
CAREERS
Work with us
You can thrive here
Diversity and inclusion
Our differences make us stronger
Search careers
Find your opportunity
Explore our solutions
Let’s set your ideas in motion
RBC Private Wealth
Integrated solutions for significant and complex wealth
RBC Brewin Dolphin
Personalised financial planning and investment advice
Brewin Portfolio Service (BPS)
Simple, guided investing through an online platform
RBC International Trusts
Specialist structures for long-term wealth preservation
OUR CORE SOLUTIONS
Wealth planning and management
A bespoke plan to manage and grow your wealth
Investment management
Tailored portfolios aligned with your goals
Pensions and retirement planning
Plan for the retirement you want
Inheritance tax and estate planning
Helping you pass on more of your wealth efficiently
UHNW and Family Office services
Coordinating complex and multi-generational wealth
Banking
Dedicated banking for your personal and global needs
Financial advice for business owners
Guidance for growth, exit and managing proceeds
Responsible and sustainable investing
Invest with greater purpose in line with your values
Philanthropy
Create a lasting impact through strategic giving
Trusts and foundations
Protect and preserve wealth for future generations
Self-directed investing
Choose from a range of ready-made portfolios
Explore our insights and ideas
Analysis, insights and research from our local and global networks
Our newsletter
Subscribe to receive email updates on news, insights and upcoming events
Quarter-century crossroads
Key themes have the potential to shape economic developments and drive certain sectors for decades to come.
Life reimagined: The biotech revolution and longevity
There’s more to a long life than simply a long lifespan. The number of years we spend in good health, or healthspan, is key. With biotech spurring promising medical innovations, we look at how it can fit into investment portfolios.
ADDITIONAL RESOURCES
Insights
Articles exploring the events and trends driving the world and your wealth
Market perspectives
Expert analysis and commentary on current market trends
Case studies
Real experiences showing how we turn ideas into action
Guides
Practical information to help you make informed decisions
Webinars
Conversations with our experts on the topics shaping wealth today
Board and non-exec director roles are attractive positions to take on before full retirement – but the transition requires careful planning.
16 May 2025 | 6 minute read
If you’re close to retirement, stepping down from a senior executive role doesn’t automatically mean an end to your working life.
In fact, many executives transition to retirement by taking up non–executive director (NED) and/or board roles with other companies – often building up a portfolio of positions in the process.
“When former executives take on these roles, there are typically three P’s that influence the decision: passion, philanthropy and pay, and the focus tends to be on the first two,” explains Nick Ritchie, senior director of Wealth Planning at RBC Wealth Management in the British Isles. “By the time they step into these roles, most executives have enough wealth set aside for a comfortable retirement. Pay is less of a motivation and they now have an opportunity to become involved in businesses they are passionate about or that align with their societal or philanthropic ambitions.”
You may want to support startups, or you may look for board positions in the charitable or third sector. In this new phase of your life, you can align your interests and values with an organisation’s goals; network with influential leaders; move into new and exciting sectors and explore investment opportunities.
While many individuals in the position of building a directorship portfolio have already created significant wealth, it’s still critical to have wealth-planning and cash-flow discussions during this period.
The nature of your remuneration often changes in a directorship role, and it’s important to understand any changes to:
“There is usually a big transition from a regular salary, bonus and traditional compensation structure to a gap where there is no income while executives are having conversations about NED or board roles,” says Lucy Day, director for RBC Wealth Management in the British Isles. “Even if they have roles lined up, their total compensation is going to be significantly lower than before.”
This is highlighted by figures from Deloitte, which show the estimated median total compensation package for a FTSE 100 CEO in 2021 as £3,620,000, with the figure for FTSE 250 CEOs standing at £1,790,000 (figures for CFOs at FTSE 100 and FTSE 250 firms stood at £2,220,000 and £990,000, respectively). Comparatively, the median estimated fee paid to board chairs of FTSE 100 companies was lower, at £425,000, with the base fee paid to NEDs even more so, at £75,000.1
“So, if they have six or 12 months during which they haven’t found any roles, or if they do have roles but the income is lower, where are they drawing their income from?” asks Ritchie. “It’s possible that some may have deferred compensation from their existing role, but is that enough to maintain the standard of living they and their family have grown accustomed to? Are they going to need to draw on other assets and are those assets set up to do that efficiently? These are the sorts of conversations you want to have as much in advance as possible.”
The picture can become even more convoluted once you start taking on director roles and managing income streams from different companies. You may also be expected to invest in the business, which will place demands on your capital.
For those working with early-stage businesses, there is the possibility of taking “sweat equity” (shares in the business in lieu of salary), which comes with a number of potential issues, such as tax implications when realising an exit.
“Different types of income streams received from different businesses creates a whole set of questions,” says Smith. “What will total income be, relative to expenditure? How will your tax position be affected? What are the broader implications with regards to eventual retirement?”
As much as it is important for NED or board members to consider their financial position while they are applying for and serving in these roles, it’s also vital to think about how these roles might impact retirement and succession-planning arrangements.
Pensions are a perfect example. Once you reach the adjusted income threshold (£260,000 for the 2025-26 tax year), tax relief on contributions starts to be reduced in line with the tapered annual allowance. “Imagine a scenario where someone has different roles that each come with access to their own pension scheme,” says Ritchie. “It can create an administrative headache and might be worth having a discussion about taking salary in lieu of a pension.”
NED or board members might take the opportunity to consolidate pensions to simplify their affairs ahead of full retirement. They may also wish to explore other tax efficient ways to save surplus earnings.
For example, if you’re buying into a new company, such as a startup business, and are expecting an exit down the line, you may choose to put some of those shares into a trust to benefit future generations. If you’ve already created enough wealth to meet your needs in retirement and have surplus income, you may even be able to put all your income from your new role(s) into a trust.
“Ultimately, as with any major change in your financial situation, there are lots of moving parts to consider, so it’s worth going back to basics,” says Smith. “Not just wealth planning while in those new and exciting director roles, but also ensuring that retirement plans remain fit for purpose.” On the latter point, this would typically involve working out how much you need in order to retire, by using cash-flow modelling.
As always, the value of regular financial reviews can’t be understated, not least because personal circumstances can change, along with rules and regulations around financial products and taxation.
1 “Your Guide – Directors’ remuneration in FTSE 100 companies.” Deloitte, 2022, https://www2.deloitte.com/uk/en/pages/tax/articles/directors-remuneration-in-ftse-100-companies-oct-2021.html .
This publication has been issued by Royal Bank of Canada on behalf of certain RBC ® companies that form part of the international network of RBC Wealth Management. You should carefully read any risk warnings or regulatory disclosures in this publication or in any other literature accompanying this publication or transmitted to you by Royal Bank of Canada, its affiliates or subsidiaries.
The information contained in this report has been compiled by Royal Bank of Canada and/or its affiliates from sources believed to be reliable, but no representation or warranty, express or implied is made to its accuracy, completeness or correctness. All opinions and estimates contained in this report are judgments as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility. This report is not an offer to sell or a solicitation of an offer to buy any securities. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Every province in Canada, state in the U.S. and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents, as well as the process for doing so. As a result, any securities discussed in this report may not be eligible for sale in some jurisdictions. This report is not, and under no circumstances should be construed as, a solicitation to act as a securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction. Nothing in this report constitutes legal, accounting or tax advice or individually tailored investment advice.
This material is prepared for general circulation to clients, including clients who are affiliates of Royal Bank of Canada, and does not have regard to the particular circumstances or needs of any specific person who may read it. The investments or services contained in this report may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services. To the full extent permitted by law neither Royal Bank of Canada nor any of its affiliates, nor any other person, accepts any liability whatsoever for any direct or consequential loss arising from any use of this report or the information contained herein. No matter contained in this document may be reproduced or copied by any means without the prior consent of Royal Bank of Canada.
Clients of United Kingdom companies may be entitled to compensation from the UK Financial Services Compensation Scheme if any of these entities cannot meet its obligations. This depends on the type of business and the circumstances of the claim. Most types of investment business are covered for up to a total of £85,000. The Channel Island subsidiaries are not covered by the UK Financial Services Compensation Scheme; the offices of Royal Bank of Canada (Channel Islands) Limited in Guernsey and Jersey are covered by the respective compensation schemes in these jurisdictions for deposit taking business only.
This publication has been issued by RBC’s Wealth Management international division in the United Kingdom and the Channel Islands which is comprised of an international network of RBC® companies located in these jurisdictions and includes RBC Europe Limited and Royal Bank of Canada (Channel Islands) Limited. You should carefully read any risk warnings or regulatory disclosures in this publication or in any other literature accompanying this publication or transmitted to you by RBC’s Wealth Management international division.
This publication has been compiled from sources believed to be reliable, but no representation or warranty, express or implied is made to its accuracy, completeness or correctness. All opinions and estimates contained in this report are judgements as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility. This report is not an offer to sell or a solicitation of an offer to buy any securities. Past performance is not a guide to future performance, the value of investments and income arising can go down, future returns are not guaranteed, and an investor may not get back the amount originally invested. Countries throughout the world have their own laws regulating the types of securities and other investment products and services which may be offered to their residents, as well as the process for doing so. As a result, any securities or services discussed in this report may not be eligible for sale in some jurisdictions. This report is not, and under no circumstances should be construed as, a solicitation to act as a securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction. Nothing in this report constitutes legal, accounting or tax advice or individually tailored investment advice.
This material is prepared for general circulation and does not have regard to the particular circumstances or needs of any specific person who may read it. The investments or services contained in this report may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services. To the full extent permitted by law none of the entities which comprise the international division of RBC Wealth Management nor any of their affiliates, nor any other person, accepts any liability whatsoever for any direct or consequential loss arising from any use of this report or the information contained herein. No matter contained in this document may be reproduced or copied by any means without the prior consent of RBC Wealth Management.
Clients of RBC Europe Limited may be entitled to compensation from the UK Financial Services Compensation Scheme (FSCS) if it cannot meet its obligations. This depends on the type of business and the circumstances of the claim. For further information about the compensation provided by the FSCS scheme (including the amounts covered and eligibility to claim) please refer to the FSCS website FSCS.org.uk. Please note only compensation related queries should be directed to the FSCS. Royal Bank of Canada (Channel Islands) Limited is not covered by the UK Financial Services Compensation Scheme. RBC Europe Limited is registered in England and Wales with company number 995939. Its registered office is 100 Bishopsgate, London EC2N 4AA. RBC Europe Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Royal Bank of Canada (Channel Islands) Limited (“the Bank”) is regulated by the Jersey Financial Services Commission in the conduct of deposit taking, fund services and investment business in Jersey. The Bank’s general terms and conditions are updated from time to time and can be found at https://www.rbcwealthmanagement.com/en-uk/terms-and-conditions. Registered office: Gaspé House, 66-72 Esplanade, St. Helier, Jersey JE2 3QT, Channel Islands. Deposits made with Royal Bank of Canada (Channel Islands) Limited in Jersey are not covered by the UK Financial Services Compensation Scheme. Royal Bank of Canada (Channel Islands) Limited is a participant in the Jersey Bank Depositors Compensation Scheme (the Scheme). The Scheme aims to provide protection for eligible depositors of up to £50,000. For further information about the Scheme and to understand your eligibility, please refer to www.jrdca.org.je/jdcs.
Investment services offered by the Bank are not covered by an investor compensation scheme as there is currently no such scheme operating in Jersey, however ‘eligible deposits’ held pursuant to investment services may be protected under the Bank Depositors Compensation Scheme described above – for more information see the Bank’s general terms and conditions. Some of the products that the Bank might recommend to you could be registered overseas and may be covered by a local compensation scheme. Your investment counsellor will provide you with the details of any overseas compensation schemes (where applicable) at the time of making an investment recommendation.
Copies of the latest audited accounts are available upon request from the registered office. ® / ™ Trademark(s) of Royal Bank of Canada. Used under licence.