Subscribe to RSS
- Daryl Stickland
Later this year, the European Parliament will vote on legislation to ensure that women fill 40% of non-executive directorships of quoted companies in the EU. Understanding of what the non-executive director role is growing. Daryl Stickland explains
In many respects there’s never been a better time to take up a non-executive position. Although competition is strong, heightened awareness of the value non-executives can bring to an organisation continues apace.
Proven high flyers with the right mix of experience and attributes are particularly well placed and increasingly in demand as businesses gain understanding of the positive impact they can have. The right person in position can bring invaluable objectivity and vision, helping to steer a board’s decision making and shape an organisation’s future. Being a non-executive can certainly be an extremely rewarding career move.
Individuals hoping to launch a new non-executive career for themselves need to be aware of the responsibility these positions command and also the key attributes which boards will be looking for them to demonstrate.
The role of the NED is different and distinct from that of the chairman. They have responsibility for providing external perspective and constructively challenging in the formulation of an organisation’s strategy. They have an important role to play in safeguarding the future of the business, ensuring a suitable approach to risk, monitoring performance, determining remuneration and might also be involved in the recruitment and succession planning of key roles.
NEDs often also provide useful contact with external networks for business development, although this should not be seen as a key deliverable; they’re not there to act as a part-time sales or business development director.
The Non-Executive Chairman (NEC) is ultimately responsible for setting the ethos of the company, for ensuring effective governance and overseeing the performance of the business, the CEO and the board.
They’ll also coach the CEO, other board members and perhaps senior management, set the board agenda and participate actively in operations, although having clear and open two-way communications with the CEO and knowing and respecting the day-to-day boundaries are critical.
They may help to initiate transformation or facilitate M&A activity but most certainly they’ll excel at building and retaining relationships with the board as well as communicating and engaging with other external stakeholders.
It’s a broad and demanding remit, which with the right person in situ can yield dramatic results, equally though, appointing the wrong chairman can significantly destabilise and weaken a business.
Both the NEC and NED provide valuable objectivity and an external perspective on business and market challenges as well as the broader macro-economic climate.
Finding the right fit, for both the non-executive and the company, is key to a successful non-executive appointment. There are ten attributes common to excellent non-executives that companies should be looking for.
- Commercial awareness
- Significant experience and demonstrable career success
- Independence – but still engaging with and being passionate about the business
- Readiness to challenge but not cross the executive line
- Financial astuteness
- Emotional intelligence
- Gravitas
- Strength of personality and charisma
- Integrity
- The ability to engage
Daryl Stickland is head of board and non-executive director recruitment at Executives Online
Print
Email
