Boardrooms set for radical shake-up

Link: Limits on non-execs ruled out

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 later today.

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