There are more FTSE 350 non-executive directors than in 2003 – and they are more experienced than their predecessors, according to a study.

Across the 12 sectors examined, Grant Thornton's survey for the Financial Reporting Council found 30% of non-execs now have direct experience of working in the same sector as the company whose boards they sit on.

Those with wider related experience rose to 59% from 53% in 2003.

Nearly a quarter (23%) of non-execs on banks have direct banking experience, compared to just 6% six years ago.

Relevant wider "financial industry" experience among bank sector non-execs doubled, from 31% to 60% over the same period to come into line with the average of 59% across the FTSE 350.

"Of course, there are many factors affecting the operation of individual company boards but it is important that NEDs have sufficient direct knowledge as well as broad experience to act as effective counterpoints," said Simon Lowe, head of business risk services at Grant Thornton.

"In my experience, the most effective boards in large listed companies are those with a balance of sector, listed and wider commercial experience."

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