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August 28, 2018

Per Ardua’s Jamie Risso-Gill’s article in The Daily Telegraph

Lauren Timlin Board, Diversity, Features

It’s hard to get talent on board when non-executive roles don’t appeal

The financial services sector has a recruitment problem. A problem that should trouble investors and shareholders alike. There isn’t a large enough talent pool of non-executive directors (Neds). Indeed, it’s dwindling.

The drivers of this fundamental recruitment problem go right to the heart of the boardroom. While no one single issue is to blame, it is possible to identify five key impediments: regulatory pressure, time commitment, pay relative to responsibility, growing Ned demand and reputational risk.

Regulatory requirements, introduced gradually over recent years to make non-executives and executives more accountable for their actions, are wholly laudable and well intended.

However, there is little doubt that this increasing burden is putting people off the non-executive pathway. In particular, the ramifications of the senior managers and certification regime are so serious that many are wary about going near the top of financial organisations.

Equally, time commitments have become a lot more onerous over recent years.

A non-executive role requires a huge time commitment, precluding candidates from taking on other, similar roles and is therefore unlikely to attract as many takers as one might anticipate.

You can read the full article by clicking here

Per Ardua’s Jamie Risso-Gill quoted in The Daily Telegraph Sally Talbot’s article in People Management on the changing Role of Leadership

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