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Role and Contribution of Non-Executive Directors

Role and Contribution of Non-Executive Directors The paper presents the results of a study based on an extensive number of interviews and focus group discussions conducted with non‐executive directors (NEDs), executive and non‐executive chairmen, chief executive officers (CEOs) and other key line and functional directors within UK corporations. Four critical issues concerning NEDs’ performance are identified, namely the need to be responsive to boardroom dynamics, the need to be multi‐competent in response to the various challenges NEDs face, the need to have the capability to address governance issues which are increasingly identified as predominating boardroom debate and the need to be sensitive to the context within which the company finds itself. Overall, NEDs are considered to provide a valuable contribution to the progress of the enterprise. However, the question that remains unanswered is what motivates NEDs to continue to address such challenges as, in the UK context, NEDs’ rewards are seen to be particularly low. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Corporate Governance Emerald Publishing

Role and Contribution of Non-Executive Directors

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Publisher
Emerald Publishing
Copyright
Copyright © 2001 MCB UP Ltd. All rights reserved.
ISSN
1472-0701
DOI
10.1108/EUM0000000005455
Publisher site
See Article on Publisher Site

Abstract

The paper presents the results of a study based on an extensive number of interviews and focus group discussions conducted with non‐executive directors (NEDs), executive and non‐executive chairmen, chief executive officers (CEOs) and other key line and functional directors within UK corporations. Four critical issues concerning NEDs’ performance are identified, namely the need to be responsive to boardroom dynamics, the need to be multi‐competent in response to the various challenges NEDs face, the need to have the capability to address governance issues which are increasingly identified as predominating boardroom debate and the need to be sensitive to the context within which the company finds itself. Overall, NEDs are considered to provide a valuable contribution to the progress of the enterprise. However, the question that remains unanswered is what motivates NEDs to continue to address such challenges as, in the UK context, NEDs’ rewards are seen to be particularly low.

Journal

Corporate Governance – Emerald Publishing

Published: Mar 1, 2001

Keywords: Non‐executive directors; Top management; Board of directors

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