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Influence in the boardroom
The days of the fat cat non-executive turning up to the odd board meeting and being handsomely rewarded for his trouble are long gone
An international insurance company wanted non-exec representation for entirely these reasons. Two non-execs were appointed for the traditional role of corporate responsibility and independence. The company had relocated its head office operations to London from overseas and required experienced, independent professionals to challenge and oversee all procedures within the company. In this case, both non-execs brought direct experience, a full market understanding, a willingness to challenge and encourage best practice together with an independence that set them apart from the executive directors. However, having worked in executive capacities, they also understood the issues faced by the rest of the board.
One of the clear benefits of a non-exec comes down to the cost factor. Unlike an expensive chief executive or full-time board member, a non-exec drives his own car and usually charges a daily rate. The amount of commitment varies from attendance at regular board meetings to up to several days per month.
Whatever path a company is taking - survival, growth, expansion or exit - a non-exec can be found to help the process in a number of ways. Whether the business is publicly accountable or whether it is a start-up looking for a specific skill set and an address book full of contacts, a non-exec is often less expensive than the traditional consultant and always better value than a permanent, full-time director: no risk, no commitment, no high outlay but with a whole host of tangible and intangible benefits.
Chris Spencer-Phillips is managing director of First Flight (Placements)
