UK could face 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

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