The Quoted Companies Alliance (‘QCA’) have recently published the findings of our new survey on small and mid-sized quoted company Non-Executive Directors (‘NEDs’).
The QCA surveyed companies to delve into an array of subjects on NEDs including salaries, working hours, what NED's deliver to companies, value for money and recruitment.
Notable findings show that there are gaps in expertise in key areas of cyber, IT and ESG:
- A majority (60%) of respondents feel Cyber and IT is seen as an area where their boards lack expertise.
- A significant proportion (34%) also felt the ESG was an area lacking expertise.
Respondents also identified strengths, sector specific experience, accounting and governance knowledge were areas where NEDs were seen as having expertise in the view of a vast majority of small and mid-cap company directors.
It seems that emerging issues of environmental and social good practice that companies feel their boards are lacking in rather than governance in and of itself. A majority of respondents (between 57% and 86%) reported seven of nine different categories as areas where their boards have expertise, showing that they believe their boards members are generally knowledgeable.
However, continued improvements in more objective recruitment processes that allow for more diverse candidates to be considered is likely to be the best way to close the current gaps in expertise.
To read the full report click on the link.