Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
For those wondering how to go about assessing board refreshment standards, Howard Sherman, head of corporate governance business development at MSCI, the stock market indices company, and a 25-year veteran of corporate governance analysis, has a succinct to-do list.GMI Ratings, founded by Sherman and now part of MSCI, has a measure for "entrenchment" of nonexecutive directors that is a function of the director's age and tenure on the board.The average non-executive director of a FTSE 100 company has been on the board almost six years, according to figures from MSCI. Although this appears much better than the nine years the corporate governance code suggests as the limit for maintaining genuine independence, this is the mean, indicating that many directors have been in place much longer.With more than 200 FTSE 100 directors in situ for more than six years, and 10 percent of directors breaching the nine-year guideline, Morrissey suggests that focusing on replacing these directors would improve turnover and bring a more diverse mix of directors.
FOLLOW THIS ARTICLE