Take your pick (non-executive directors)

Take your pick (non-executive directors)

Donkin R.Financial World, June 2006, Start page: 17, No. of pages: 3

Purpose – to identify the duties and characteristics of non-executive directors. Design/methodology/approach – reviews the requirements of the Higgs recommendations for broad board membership. Looks at the way head-hunters choose a shortlist of directors. Adds the tension involved in the role and companies’ attitudes. Findings – finds that many companies are still hostile to lay non-executives, but that Higgs has gained converts in companies seeking high performance standards, opposed to agency influences. Notes some believe non-executives would hamper business strategy developments. Practical implications – argues that non-executive directors must be strategy-led,with a subordinate policing role. Originality/value – describes the role with some difficulty, because of the dislike of regulation by managements. ISSN:1360-4295 Reference: 35AU156

Keywords: Agency theory, Corporate governance, Non-executive directors, Strategy, United Kingdom