The Role of Non-Executive Directors in Growth Firms
In September 2019 the Quoted Companies Alliance (‘QCA’) and Henley Business School, sponsored by Downing LLP, published a research report on ‘The Role of Non-Executive Directors in Growth Companies’. The report - based on 32 interviews and 3 focus groups with seasoned executive and non-executive leaders and investors – highlighted the fundamental importance of “highly capable and well-prepared Non-Executive Directors (NEDs) with clarity about their role” for achieving good governance and company performance.
The report highlighted how the NED role is different from larger cap firms, and how it varies according to firm size/stage of development, degree of complexity of business/operating model and degree of ownership concentration. This requires different approaches, capabilities and skills from the Non-Executive Director.
The Covid-19 crisis has brought into sharp focus the role of the NED and the capabilities and skills required to successfully discharge their duties. Crises have a tendency to exacerbate the tensions that are already inherent in the systems where we operate. It is important that NEDs are acutely aware of their role, the emerging tensions and the skills they need to address them.
Filipe Morais, Lecturer in Governance and Programme Director of the MSc in Management for Future Leaders at Henley Business School sets out 5 areas to consider.
To read the summary please click here.