Non-exec wants DTI to shelve Higgs' report
A senior non-executive director has come out strongly against the Higgs' report on corporate governance calling it a 'knee-jerk political reaction'.
Link: Higgs’ special report
In a strongly worded letter to the Financial Times Paul G. Fullager, a senior non-exec at two Techmark 100 companies, said the requirement that half of board executives be independent would ‘give rise to a loss of talent in UK boardrooms and damage shareholder wealth’.
The consequence, according to Fullager, would see non-independent non-execs forced off company boards in large numbers.
Non-executives who have worked for the company and ‘therefore thoroughly understands it’ cannot be independent, but ‘the man in the street who has no knowledge of the specific business or experience of running a company would fully qualify’ Fullager explained.
Rather he said non-execs should be encouraged to own shares in the company so that if the company failed they would suffer directly.