Friday, January 14, 2005
NEDs worry about a lack of clout
Non-executive directors who feel they need to control or rein back their chief executive should be examining their relationship as a matter of urgency, an HR consultancy has suggested.
The advice has come as latest research by consultancy IRS has argued that a growing number of non-executive directors believe they lack the power to control a chief executive with a large stake in a company.
Will Dawkins, a partner at Odgers, Ray & Berndston, warned that it was not the job of the non-exec to “control” the chief executive.
“Their role is to challenge them and hold them to account. If a non-executive chairman feels he should be controlling his CEO, then his relationship is wrong,” he told Management-Issues.
See full Article.