Over the last 16 years that PwC has been running its FTSE 350 Non-Executive Director programme, trends observed within the programme have reflected the sea change in the NED world. The current preference for half-day workshops rich in content over the short ‘broadcast’ briefing sessions with which the programme began are indicative of the growing demands and complexity of the NED role, the higher reputational risk and the seriousness with which NEDs take their position.
The financial crisis has put significant extra pressure on Non-Executive Directors, with average time spent on the job expected to rise over the next year by 6 days to an average 26 days. The extra time commitment has been driven by risk and regulatory requirements combined with greater business challenges, according to the PwC/IoD Non-Executive Director survey 2011.
At the best practice for Directors conference, hosted by Offshore Professional Conferences Limited, Paul Silcock and Nicola Mills, Co-authors of the PwC Channel Island Non-Executive Director Survey, presented and discussed the increasing attempts to measure the effectiveness of Boards and developments in the period since the UK Corporate Governance Code recommended that Board effectiveness reviews should be externally facilitated at least every 3 years. We also considered whether the Stewardship Code, implemented around the same time and monitored by the FRC is having an impact. The effect of calls for remuneration to be linked more closely to strategy and risk, (not just in the financial services sector), on the Remuneration Committee was also considered.
The presentation attached gives some of the highlights that Paul and Nicola covered during the conference. If you have any queries, please do not hesitate to contact us.