FWB Non-Executive
The most successful companies have always been those that utilise the skills and experience of non-executive directors from diverse backgrounds to complement and strengthen the executive team.
With corporate governance under increasing scrutiny, the effectiveness of company boards and the quality of non-executive directors has never been more important.
That is where FWB Non-Executive can help. A division of FWB, FWB Non-Executive provides a specialist service dedicated to the search, selection and recruitment of high calibre non-executive directors.
Our aim is simple - to help our clients create or maintain high quality, dynamic boards that embrace opportunity and change, whilst ensuring high standards of corporate governance and well-managed risk.
Role and Responsibilities
As members of the unitary board, non-executive directors provide support to the executive team in developing and implementing their strategic aims and by challenging their thinking.
Non-executive directors, with their part-time role and broad experience, must be able to provide an objective view of the company's plans and performance and ensure that it is meeting its obligations to shareholders and other stakeholder groups. There is no distinction legally between the duties of care expected of executive and non-executive directors under the legislative framework of the Companies Acts.
In addition to preparing for and attending board meetings, non-executive directors may be expected to take part in company events, or serve as a member of standing committees, or on the Board of Trustees for the company pension scheme.
Other key functions include assisting with strategy development, scrutinising the company's performance and reporting and ensuring that it has in place robust financial controls and risk management systems. Non-executive directors also have a role to play in determining executive team remuneration packages and in succession planning, including appointment and where necessary removal of executive directors.
Corporate Benefits of Non-Executive Directors
Non-executive directors play a vital role in any company, public or private, by providing an objective assessment of threats and opportunities, as well as strategy. Often they have wide experience of various business sectors, or particular knowledge or understanding of specific markets.
In addition, non executive directors extend the expertise of the board through additional functional skills and experience of specialised areas of corporate development such as taking a company puiblic, financing for growth, investor relations, expanding in international markets or mergers and acqusitions.
Non-executive directors provide independent thought during deliberation and decision-making and must be able to challenge constructively whilst providing supportive and friendly accountability for the executive team. They will have the experience to spot the risk indicators in a business, as well as suggesting efficient and effective management reporting, to ensure the board is able to monitor key performance indicators within the business.
Mature non-executives can provide experience to a younger entrepreneurial management team, while younger candidates may impart new business ideas to an established team that requires a more innovative and creative style.
Benefits of Non-Executive Directors
Serving as a non-executive director on the board of any company, large or small, can be both challenging and rewarding. The position carries responsibility, but offers a number of advantages.
These include:
- Gained increased awareness of alternative business models and strategies
- Expanding business knowledge and network of contacts
- Learning from exposure to executives with different skills and methodologies
- Achieving recognition from peer group within a different business sector
- Contributing to another enterprise and supporting entrepreneurs
- Excitement of working with highly motivated executives who are hungry to deliver
- Motivation to introduce new ideas to your own company - assuming you are still on an active career path
- Satisfaction of delivering a business success
- Financial reward
- Flexible working pattern - enhances work-life balance
While maturity and experience is usually a prerequisite of taking on a non-exectuvie directorship, younger executive directors are often encouraged to take on a non-executive role in another company to assist their development in business leadership, resulting in benefits to their executive board.
