RegulationCorporate GovernanceUK could face non-executive shortage

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
Norman
Broadbent
.

Under the new
Corporate
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
board.

Related Articles

Corporate governance: staying ahead in accountancy

Corporate Governance Corporate governance: staying ahead in accountancy

3m Alia Shoaib, Reporter
One in 20 audit firms quit as market evolves

Audit One in 20 audit firms quit as market evolves

1y Kevin Reed, Writer
Colin: #EURef bankers a problem

Business Regulation Colin: #EURef bankers a problem

1y Taking Stock
PwC and Deloitte chiefs sign Remain letter

Business Regulation PwC and Deloitte chiefs sign Remain letter

1y Kevin Reed, Writer
Leader: Audit competition drives change, not necessarily quality

Accounting Firms Leader: Audit competition drives change, not necessarily quality

1y Kevin Reed, Writer
EU audit reform to open up £10bn market for firms

Accounting Firms EU audit reform to open up £10bn market for firms

1y Richard Crump, Writer
Best Practice: Saffery Champness managing partner Rob Elliott

Accounting Firms Best Practice: Saffery Champness managing partner Rob Elliott

2y Calum Fuller, Reporter
Standard Life Investments opposes EY's appointment as Shell auditors at AGM

Accounting Firms Standard Life Investments opposes EY's appointment as Shell auditors at AGM

2y Richard Crump, Writer