The new code restricts the number of non-exec posts that can be held by executives, forbids CEOs from ever becoming chairman at the same company and proposes that half of all board members should be ‘independent’ under a tough new definition.
Simon Bartholomew, head of board practice at recruiter Russell Reynolds Associates, said Higgs’ definition of senior independent directors rendered the position very difficult to recruit for.
‘Senior independent director is the job from hell – you are chief whistleblower.
It is an awful lot of responsibility with very little authority and you only can do it on a part-time basis,’ he said.
Big Four firm KPMG said it foresaw recruitment problems and that it was advising companies to look to the ‘marzipan-layer’ of senior management.
The firm is also urging companies to revise succession plans, as execs can no longer walk into the chairman’s position.
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The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
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