Non Executive Director
Having sat as a main board director for various technology businesses, Nicholas understands the true value of providing an independent view on the strategic direction of business.
My role is to often provide a creative contribution to the board by providing independent oversight and constructive challenge to the executive directors and senior management teams with particular focus on issues of strategy, performance and resources including key appointments and standards of conduct.
Nicholas has a breadth of experience and has particular personal qualities relevant to all of his assignments. Additionally, Nicholas possesses specialist knowledge that will provide the board with valuable insights and/or key contacts in related industries. Of the utmost importance is his independence of the company management and any of its interested parties. This means that he brings a degree of objectivity to the board’s and management teams deliberations, and play a valuable role in monitoring executive management.
- Reviews and approves the strategic plan, with constructive challenges;
- Monitors management’s performance in meeting agreed goals and objectives;
- Ensures the integrity of financial information and that controls and risk management strategies are robust and defendable;
- Determines appropriate levels of remuneration for executive directors;
- Appoints and removes executive directors, and succession planning
As a non-executive director, Nicholas tends to focus on board matters and not stray into ‘executive direction’, thus providing an independent view of the company that is removed from the day-to-day running and brings:
- Independence
- Impartiality
- Wide experience
- Special knowledge
- Personal qualities
The key responsibilities of NEDs:
Strategic direction
As ‘an outsider’, the non-executive director may have a clearer or wider view of external factors affecting the company and its business environment than the executive directors. The normal role of the NED in strategy formation is therefore to provide a creative and informed contribution and to act as a constructive critic in looking at the objectives and plans devised by the chief executive and the executive team.
Monitoring performance
Non-executive directors should take responsibility for monitoring the performance of executive management, especially with regard to the progress made towards achieving the determined company strategy and objectives. They have a prime role in appointing, and where necessary removing, executive directors and in succession planning.
Remuneration
Non-executive directors are also responsible for determining appropriate levels of remuneration of executive directors. In large companies this is carried out by a remuneration committee, the objective of which is to ensure there is an independent process for setting the remuneration of executive directors.
Communication
The company and its board can benefit from outside contacts and opinions. An important function for NEDs, therefore, can be to help connect the business and board with networks of potentially useful people and organisations. In some cases, an NED will be called upon to represent the company externally.
Risk
NEDs should satisfy themselves on the integrity of financial information and that financial controls and systems of risk management are robust and defensible.