Number available for non-executive directorships increases by 40% in two years
Date: 02 September 2011Growing talent pool of non-executive directors emerging
The Institute of Directors’ Boardroom Centre, a dedicated and independent source of non-executive directors in Ireland, has reported a 40% increase since 2009 in the number of those registered on its panel as being available for non-executive director positions, dispelling the perception that there is a limited talent pool of non-executive directors available in Ireland.
The Boardroom Centre’s panel, all of whom are members of the Institute of Directors in Ireland, is now made up of just under 300 highly experienced and qualified candidates who are available for non-executive director positions.
Qualified expertise
Almost half (47%) of those on the panel have been a director for ten or more years and are highly qualified, with one quarter (25%) of all candidates on the panel having undertaken the Institute of Directors’ Chartered Director programme, the most prestigious director qualification in Ireland, combining learning with professional experience.
In addition, almost half (47%) of those on the panel have acted or currently act as chairperson of a board and almost 3 in 4 (73%) candidates on the panel hold a financial or business qualification.
Director trends
Interestingly, the Boardroom Centre has seen a downward trend in the age profile of those on the panel, with the percentage of candidates in the 40-49 years age bracket increasing by 4% since 2009 and the number of those aged 50 years and over, dropping by almost 3% in the same period.
Fewer than 1 in 5 (18%) females are registered with the Boardroom Centre as being available for non-executive directorships, a growth of just 0.5% since 2009. This figure does however mirror the breakdown of the overall IoD membership, 16% of which is female.
Clients
Business at the Boardroom Centre has seen substantial growth over the past two years with a 97% increase in the number of companies contacting the Boardroom Centre to appoint a non-executive director or chairperson to their board.
The majority (58%) of the Boardroom Centre’s clients in 2011 have come from the financial sector, not surprising given the introduction of the Central Bank’s Corporate Governance Code for the industry. This figure has increased by 12% since 2010.
SMEs are also increasingly choosing the Boardroom Centre to source their non-executive directors. One in 4 (25%) of the Boardroom Centre’s clients this year have been SME businesses, this compares to 1 in 6 (16%) in 2010.
Commenting, Thora Mackey, Head of the Boardroom Centre, said: “More and more senior business people are now coming forward for non-executive directorships and are keen to contribute to improving the quality of boards in Ireland.
“The independent non-executive director plays a valuable role in bringing balance and objectivity to the boardroom, and while the responsibilities of the role can be onerous, the figures show that the members of the Boardroom Centre’s panel are highly skilled, experienced and well qualified to take on non-executive director positions and this has been recognised by a host of client companies. Members of the Boardroom Centre’s panel undergo a thorough screening process, so our clients can be assured of the calibre of potential candidates.
“A well functioning board is central to the health and success of a business and transparency with regard to board appointments has never been as important. So for those companies and State agencies who wish to source a suitably qualified non-executive director through a fully independent and dedicated channel, the Boardroom Centre is increasingly becoming the service of choice.”
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