The role of the Non-Executive Director has evolved dramatically in modern business, extending far beyond the traditional view of NEDs as guardians of corporate governance. The new report from BDO and Norman Broadbent offers essential insights in its study of this shift, whilst highlighting the importance of boards undertaking formal and rigorous review.
“Board directors are navigating many challenges in the modern world against a backdrop of increased regulation and economic uncertainty. The need to evaluate risks and weigh them against opportunities is growing - and with it the need for independent oversight, strategic advice, and direction.” ~ Shrenik Parker, CFA - Director, Financial Services Advisory, BDO UK LLP.
The latest report from BDO and Norman Broadbent highlights the importance of boards undertaking a formal and rigorous review periodically of their performance, internally and externally.
With increased focus on diversity and inclusion, succession planning and regulatory change, there is more emphasis on boards to set a robust and compliant ‘tone from the top’, paving the way for organisations and their management to flourish amidst the highly competitive economic environment.
In particular, the traditional role of the NED has always been as a key guardian of corporate governance, but they haven’t necessarily been seen historically as providing more value beyond this.
Now, their expertise is sought to contribute to strategy and an ever-expanding remit of other areas, particularly stakeholder considerations.
As articulated by Tanya Gass, Partner at Norman Broadbent PLC, the new report seeks to recognise this shift and ask what a high-performing boardroom needs from its NEDs to face the current and future business environment.
The findings of the report therefore represent essential insights for NEDs of all stages.
Some of the results from the research, for example, show that:
- The most valued NEDs are strategic thinkers with strong industry expertise.
- 25% say that they need more NEDs, but 98% say their board struggles to attract the right talent.
- 53% say remuneration is not keeping pace with the demands of the role, with small and listed company NEDs in particular feeling that the risk/reward ratio is out of kilter.
- A change of government policy is not considered a significant opportunity for UK business.
- ESG, AI and Cyber may be hot topics, but they’re not priorities in the boardroom. Top of the charts are Talent and the Economy.
Be sure to read the full report here to understand these crucial insights and more.
About Norman Broadbent
Norman Broadbent is a leading Professional Services firm with 40 years of experience; they offer five interconnected Talent Acquisition & Advisory Services - including Executive Search, Senior Interim Management, and Leadership Consulting - tailored to address the unique challenges faced by boards. Their bespoke solutions focus on excellence, delivery, and innovation.
You can view their insight on the report here.
About BDO
BDO's global network of public accounting, tax and advisory firms operates in 166 countries, offering innovative and flexible solutions to help businesses in all sectors navigate the challenges they face. They provide support with a proactive approach that emphasises responsibility, integrity, and collaboration.
You can view their insight on the report here.