3 tips when choosing an NED or Non-Exec Chairman 24 December, 2007
Posted by Simon Webber in Board Member, Chairman, Chairmen, corporate, Corporate Finance, Corporate Governance, cost, director, experience, finance, governance, growing companies, growing company, idsquared, NED, NEDs, non-exec, non-executive, non-executive director, Non-Executive Directors, payment, remuneration, Simon Webber, skills, small company, tips, unquoted, Venture Capital.trackback
Here are three tips that are worth considering because they go against some seemingly ‘common sense’ assumptions:
1. Look outside your industry; often the most valuable aspect of a Non-Executive Director or Chairman is their ignorance. (well, sort of!) Being able to approach the old problems in a new way and having the distance to look at processes, products and services with the wisdom of ‘general business experience’ can help the Board as a whole recognise its strengths and weaknesses.
2. Whilst picking a Non-Executive Director or Chairman with good contacts can be very helpful, it should not be the only consideration. They will be very close to your business and can often be the only person able to focus on the future strategic direction of the company. Any Board member should be so much more than a salesmen.
3. Don’t believe everything you read in the papers! Larger companies might look for a Non-Executive Director or Chairman to perform a corporate governance role. In a smaller company, especially a fast-growing one, they can add real value, help drive the business forward and support the executive team in the running of the company.
You may find it useful to take a look at our article entitled “What Makes The Right NED?” If you would like to discuss any aspects of recruiting or appointing a Non-Executive Director or Chairman then do, please, contact us.
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