UK could face non-executive shortage
Strict adherence to corprorate governance code could push top UK companies into non-executive shortage
The UK’s top companies could face a shortage of non-executives if they
strictly adhered to new governance rules about rotation.
A third (32%) of non-executive directors have served on the same board for
more than six years, with 10% serving more than nine years.
“The corporate governance code was drawn up with the best of intentions, but
it will cause an acute shortage of non-executive directors at FTSE 100
companies,” said Andrew Garner, chief executive of
Under the new
Governance Code issued by the Financial Reporting Council, any term
beyond six years for a non-exec should be subject to “particularly rigorous
review”, and taken into account the need for progressive refreshing of the