Audit committees struggle to find chairmen
A rise in governance obligations has caused a drop in the number of business professionals willing to take on the role of chairman of an audit committee, new research can reveal.
Almost 70% of those polled in a Mori study said they were less likely, than a year ago, to accept the chairmanship of an audit committee.
The audit committee chairman’s role has becoming increasingly important to investors, following moves to tighten existing regulation in the UK and the introduction of new US rules on corporate governance.
Mori interviewed 105 chairmen, chief executives and finance directors of FTSE500 companies in a study for accountants Ernst & Young.
In January 2003 Sir Robert Smith, chairman of the Weir group, released a report on audit committees, which tightened rules on independence of non-executives and limited the number of non-exec posts a person could hold.