FDs split on Higgs benefits
The Higgs' report says 50% of board members have to be non-execs. Will this impede entrepeneurial drive?
Link: Read our Higgs special report
The Higgs report may go some way to improving corporate governance within business, but many financial directors believe the recommendations within the report could actually damage companies.
The Accountancy Age/Reed Accountancy Personnel Big Question this week asked whether the requirement that half the members on a company board should consist of non-executive directors could impede the entrepreneurial drive of a business. Nearly half of those questioned thought it would while just over a third were dismissive of the idea. ‘You need drive and energy from within the company,’ said one FD. ‘Non-execs should be there to advise and should not be more than half the board.’
Another said: ‘Non-execs are no more impartial than anyone else. They have their own agenda and have no idea about what makes a business tick.’
Some though were not concerned by the overall effect of the Higgs report.
‘The entrepreneurial drive of a business does not necessarily come from the board,’ commented one. ‘It also comes from management, core workers and shareholders.’