Sports Direct hit the headlines in May after its only female director resigned. It was suggested her voice was no longer being listened to by the board and her effectiveness in the role was being limited.
For large listed companies, governance guidelines state at least half the board should comprise independent non-executive directors. While the guidelines don’t apply to smaller growing businesses, there are compelling reasons why the right NED appointment makes sense.
The UK Corporate Governance Code now requires listed companies to use a headhunter for board recruitment. However, according to Women on Boards (WOB), headhunters have limited incentives to look further than their existing database, where they believe that they already have several “good enough” candidates
Four years after the launch of the Davies Report, the UK has become the fifth country in the world in terms of the percentage of women on corporate boards. However, Cranfield University believes that Britain is about to hit a road block in terms of gender equality.
The role of a NED on an unlisted board may be quite different from that in listed entities, probably due in part to the dynamics of the ownership structure, the influences imposed by internal and external stakeholders and the composition of the boardroom.
Non-executive directors (NEDs) are derided and envied in equal measure for appearing to do little work for their handsome fee and castigated when companies stray from best practice.
AES Engineering founder Chris Rea reckons one of the best ways to improve the quality of your managers is to create a board of directors.
According to the Association of Chartered Certified Accountants (ACCA), small business owners are shunning non-executive directors (NEDs) and boards to the detriment of their business.