Non-Executive Directors

With the global recession still in effect and the market in a state of flux, a number of companies have told us that they are now seeking to change their Board composition. New experiences, knowledge, and business acumen at a governance level are being sought by our leading companies to sustain them through the current period and prepare for the economic upturn. This new value and impetus will also position their organisations to take full advantage of the upturn in the economic cycle. We are currently working with a number of companies to assist with their Non-Executive Director appointments. We would like to share with you our observations from recent Director appointments.

Pool of Directors

Common perception is that there is a very limited number of competent, experienced director candidates from which to choose. We would argue that this is not the case and that the pool is larger than a cursory look at the market would suggest. There are directors who appear under the radar but are highly effective board members of great value-add. In the pipeline, there are also a number of executives ready to make the move into Non-Executive directorships searching for the opportunity to step up. The benefit of this is a pool of increased talent and diversity of experience, ensuring that this pool does not become too limited.

Director Responsibility

With all companies facing challenging market conditions it is no longer possible for Directors to place the onus of ensuring their company’s solvency to the Finance Director or other financially competent directors. Each director must now ensure their company is not trading whilst insolvent and must have the knowledge to do so. We encourage those who need to brush up their financial skills and know what questions should be asked at the Board table to speak with the companies financial advisers who can assist.

Director Competencies

Our clients are requiring more from their Directors in that they are actively involved, informed, and integrate well with one another. They expect good intellect, sound integrity, and most importantly, that they are independent, something that has been lacking in the many of the troubled finance companies. In these times it is not enough for a Director to be pragmatic, strategic and resolute. The more respected directors are those who display the courage to ask the difficult and sometimes “dumb” questions in a constructive way so everyone understands the issues.

Strategic, financial and operating acumen are also indispensable and therefore we are seeing a preference for Directors who have held significant line management responsibilities in their career.

Signium International

If you would like to find out more about our insights on our services in the appointment of Non‑Executive Directors then please contact us.