Deloitte: dramatic drop in executive director numbers
A fifth of positions in the FTSE 350 have gone since 2002
The firm found that the number of executive directors of
FTSE 350 companies had
fallen by 20% in the past five years- equating to a loss of almost 360 positions
According Carol Arrowsmith, head of the remuneration team at Deloitte, the
decline is due to corporate governance guidelines which require half the board
to be independent.
‘Most companies have a main board and an executive committee. What is
happening is that some people are sitting on the executive committee and not
being promoted to the main board,’ she said – the danger being that strategy is
being pushed out of the boardroom and into executive committee meetings, leaving
non-executive directors uninvolved.