Companies to explain non-exec choices
Companies will soon be expected to offer explanations for their choice of non-executive directors under new proposals aimed at making the boardroom more accountable for its actions.
Companies will soon be expected to offer explanations for their choice of non-executive directors under new proposals aimed at making the boardroom more accountable for its actions.
Link: Non-execs admit to knowledge gaps
A review of non-executives commissioned by the government has highlighted the issue of a lack of women on company boards but has ruled out new laws or statutory quotas to address the problem.
Instead it is thought that companies will have to explain on what basis they have chosen certain directors and how the selection process occurs. The move fits in with what is expected from the Higgs report on non-executive directors, which is also thought to suggest voluntary measures instead of regulation.
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