‘There should be a formal, rigorous and transparent procedure for the appointment of new directors to the board.’ (The Combined Code)

With Board appointments under ever increasing scrutiny, whether you are looking for suitably qualified individuals for Chair, NED or other Board appointments, the rigour and clarity in defining the specification are critical in demonstrating an open and professional approach.

A significant point for many of our clients is that the recommendations in the Higgs Review are explicitly intended to apply to smaller listed companies (with the exception of some pertaining to Board Committee membership.) The “comply or explain” philosophy, which is intended to ensure adherence to the spirit rather than the letter, offers some leeway, but there is no doubt that all quoted company chairmen will need to be able to demonstrate to shareholders that their Board members:

• have been recruited through an open, formal and impartial process
• clearly offer the skills, experience and personal effectiveness to make an active contribution
• and specifically, that NEDs bring an independent, external viewpoint and test the executive directors’ decision making

We believe that we add value from the very start, providing an independent, impartial opinion and helping to develop a clear understanding of:

• the full requirements of the role
• the contribution expected of a new appointee
• the skills, experience, qualifications, interpersonal style, sector understanding and commercial background needed to enable him or her to make that contribution

Our search process is built on a combination of:

• extensive candidate databases
• a broad range of formal and informal networks
• specialist research
• creative and lateral thinking

All suitable candidates are interviewed prior to client submission and we endeavour to produce an initial short list within four to six weeks from starting an assignment.

We assist the client throughout the interviewing process, and following selection, undertake the appropriate reference checks. We will, when required, provide informed advice during contractual discussions.

We can also offer assistance with the induction process and prepare new appointees for Board roles in areas such as corporate governance. The latter is handled by our associated company IDDAS.