The Corporate Governance Institute is frequently asked this question: ‘How do I get a position on a board? How do I become a non-executive director?’
This video masterclass by David W Duffy teaches all you need to know about becoming a non-executive director and how to get a job as a non-executive director.
You need to plan your NED career as carefully as you planned your previous career. It is not an easy process. It can be difficult to land decent roles as a non-executive director. You need to prepare and start your preparation early.
The median EU pay rate for a non-executive director is £70,000.
“A good non-executive director is very good at big picture strategy; looking at the sea, not the waves,” says Duffy.
Directors are not the management, they direct fresh thinking in the boardroom. Non-execs should bring fresh insights, fresh skills to the business.
“The Diploma in Corporate Governance prepares people to be confident non-executive directors, to be able to ask the right questions in board meetings,” says Duffy.
Over the past ten years, the non-executive directors’ role has evolved significantly.
In the boardroom, successful independent directors need to challenge any governance breaches fearlessly and be solid independent voices.
Studies by the Association of British Insurers (ABI) have found firms that breach the City’s corporate governance code underperform, mainly because their boards tend to involve executive instead of non-executive directors.
Companies with good corporate governance and strong non-executive directors on their boards make more money – they are more valuable for their investors.
Directors play a crucial role in policing the board, managing conflicts, and ensuring factual information is presented.
Being a non-executive director comes with many legal obligations. An independent director who fails to challenge bad corporate governance or ethical breaches can violate the law.
Governance relies heavily on the board of directors to ensure an appropriate duty of care is observed.
Good governance expectations are placed on all directors, but more specifically on independent, non-executive directors.