Fractional and Interim NEDs: A Flexible Option for Growing Companies

Introduction: A New Model of Board Engagement

Traditional NED appointments assume a long-term commitment: multiple board cycles, steady committee work, and ongoing engagement. But for many companies — particularly those in growth, transformation or investment phases — that model is not always practical or necessary.

Enter the fractional and interim NED. These directors provide high-value oversight on a part-time or project-specific basis, offering boards the strategic benefits of independent insight without the fixed costs or rigid commitment of a traditional NED appointment.

This model is increasingly popular among growing companies, family-owned businesses, scale-ups, and investor-backed firms.

What Is a Fractional NED?

A fractional NED is a non-executive director engaged for a defined portion of time, often through a retainer or flexible contract. Instead of a full board cycle, they may:

• Attend selected board meetings.

• Contribute to specific committees.

• Advise on targeted projects such as market entry, M&A, or resilience planning.

Fractional NEDs are attractive for boards that want strategic expertise without a permanent commitment.

What Is an Interim NED?

An interim NED is appointed for a specific duration — often six to eighteen months — to address a transitional challenge. Common triggers include:

• Preparing for IPO or major fundraising.

• Supporting board succession or leadership change.

• Guiding the business through restructuring or turnaround.

• Meeting regulatory or investor demands for strengthened oversight.

Interim NEDs are particularly valuable when boards face urgent challenges that require sector-specific expertise.

Why Boards Choose Fractional or Interim NEDs

The rise in demand for fractional and interim NEDs reflects four major drivers:

1. Cost Efficiency – Growing companies may not have the budget for a traditional NED fee package but still need oversight.

2. Flexibility – Appointments can be tailored in scope, duration and focus.

3. Access to Expertise – Boards can bring in high-calibre candidates they could not otherwise attract full-time.

4. Investor Confidence – Even part-time NEDs provide validation that governance is taken seriously.

Practical Benefits in Telecoms, Infrastructure and Technology Boards

• Telecoms – Fractional NEDs can advise on spectrum strategy, M&A or national security issues without long-term cost.

• Infrastructure – Interim NEDs can support ESG reporting or project oversight during investment-heavy phases.

• Technology – Boards facing AI, cyber or quantum challenges can bring in part-time expertise to strengthen decision-making.

When a Fractional or Interim NED Is the Right Choice

Boards should consider these flexible appointments when:

• Facing fast-changing circumstances where long-term commitments are uncertain.

• Preparing for specific events such as IPOs, fundraising, or acquisitions.

• Operating in growth markets where investor pressure requires governance without full overheads.

• Seeking to test the value of specialist expertise before committing to a permanent role.

Risks and Limitations

Fractional and interim appointments are not a panacea. Boards must be mindful of:

• Continuity risks – Interim NEDs may leave gaps when their term ends.

• Commitment levels – Fractional NEDs must still be sufficiently engaged to add real value.

• Investor perception – Some investors may prefer long-term governance stability.

The key is transparency: boards should be clear with investors and regulators about why a fractional or interim model has been chosen and how it adds value.

So What for Boards?

Fractional and interim NEDs are no longer fringe models. They represent a pragmatic solution for companies that need strategic insight and governance credibility without the cost or rigidity of traditional appointments.

For boards in telecoms, infrastructure and technology — sectors where expertise is scarce and stakes are high — flexible NED roles can deliver immediate value.

Board Conclusion

Boards that embrace fractional and interim NEDs gain flexibility, access to expertise and investor confidence at critical moments in their growth journey.

While not a replacement for permanent governance, these roles allow companies to bring in the right expertise at the right time. The best boards use fractional and interim NEDs as part of a deliberate strategy for scaling, resilience and transformation.

Bridge Connect works with boards seeking flexible NED solutions. Whether fractional or interim, we help companies in telecoms, infrastructure and technology access board-level insight and governance when they need it most — without unnecessary cost or rigidity.

If your board is considering a fractional or interim NED appointment, contact Bridge Connect for a confidential discussion.