BusinessCompany NewsIoD slams ‘dangerous’ role of non-execs

IoD slams 'dangerous' role of non-execs

The president of the Institute of Directors has delivered a scathing attack on the role of non-executive directors who supervise company boards, suggesting instead, that all directors should work full time in the business.

In a speech at the IoD’s annual convention in London, Lord Young of Graffham said the role non-executive directors are expected to perform in a company is ‘the biggest and most dangerous nonsense’ in the current code of corporate governance.

He said outside directors did not and could know enough about the business they supervised.

Young explained that the only time he worked as non-executive director, he found out about the business in a way no outside director could know.

‘I realised over those few months that, as outside directors, we knew little about the business we were supposed to direct and, in truth, were directors in name only.’

He defended non-executive directors saying they could only judge what management told them adding that ‘if management is not too forthcoming, they can never know until it’s far too late.

Furthermore he said all information about remunerations should be transparent, making it a criminal offence if necessary, when a board withholds this information from shareholders.

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

7m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

7m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

10m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

10m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

10m Emma Smith, Managing Editor