A new study commissioned by the Department of Trade and Industry in the wake of the Higgs report on non-executive directors has found that boardrooms lack diversity because companies appoint directors from a narrow pool of talent.
Link: FDs split on Higgs reforms and non-executive power
The report on the recruitment and development of non-executive directors by London Business School dean Laura Tyson recommended that boards introduce a more rigorous and transparent selection process for non-execs, improve training and evaluation methods for board members, and promote wider searches for potential candidates.
The report suggested that a wider search for non-execs would promote more women and minorities into the positions and improve a company’s performance by bringing in a broader viewpoint.
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