FRC chief says non exec fears misplaced

Stephen Haddrill, CEO FRC

Fears of a looming shortage of non executive directors is overplayed,
according to the chief executive of the Financial Reporting Council.

In a letter to the Financial Times this morning Stephen Haddrill
described fears that a shortage could result from the new UK corporate
governance code were “misplaced”.

He said that research carried out last year found that there were no more non
execs in most sectors than in 2003.

The fears stem from a “comply or explain” provision in the code which
proposes that non execs should be reviewed after six years and re-elected
annually after nine years.

Haddrill wrote these were not new demands.

“While there has been a welcome increase in the refreshing of company boards,
there is no evidence that this has created a shortage of non-executive directors
over the last seven years.”

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