Boardrooms set for radical shake-up
The long-awaited Higgs' report, aimed at improving corporate governance amongst listed companies, is set to dramatically alter the make-up of company boardrooms.
Undertaken by former investment banker Derek Higgs, the official report is only due out at 11:00am this morning, but has been widely leaked to the national papers.
Amongst its recommendations, the Higgs report will call for at least half the company board, excluding the chairman, to be non-executive directors, independent of management.
A more transparent recruitment process is also to be put forward with the recommendation that companies set up a nomination committee on executive jobs, chaired by an independent non-executive and made up of a majority of non-executives.
This nomination committee will be expected to report on its recruitment processes and activities during the year, in a statement in the annual report.
Full coverage of the Higgs’ report will appear on AccountancyAge.com later today.