The Quoted Companies Alliance’s (QCA's) recent survey on the role and value of Non Executive Directors (NEDs) shows that a majority (60%) of respondents feel the subject of Cyber and IT is an area where their boards lack expertise. A significant proportion (34%) also feel that Environmental, Social and Governance (ESG) is an area where boards lack expertise.
Although BoardEx data shows boards have improved in terms of gender diversity, companies still have some way to go to meet the expectations of regulators and potentially their investors.
Sector specific experience, accounting and governance knowledge are identified as strong points for NEDs. This reveals that it is indeed the emerging issues of environmental and social good practice that companies feel their boards lack rather than governance itself.
A majority of respondents (between 57% and 86%) report strengths in seven out of nine areas of expertise, showing that they believe their boards members are generally well equipped.
Tim Ward, Chief Executive, the Quoted Companies Alliance said:
“Identifying areas of weakness is a useful practice for companies but the key is fixing those shortcomings to create real change. For most boards, emerging issues like the environment and social impact together with cyber are areas where they see they have weaknesses. This ties in with the issue of diversity. More diverse boards will undoubtedly broaden the skill set for company boards and will help to close the gaps in these areas. It is important that companies seek to take an objective approach to hiring Non-Executive Directors in order to ensure their pool of potential candidates is wide and doesn’t solely rely on personal networks that may inherently lack diversity.”
Read the QCA Non-Executive Director Report here.
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Notes to the Editors:
The survey was conducted between the 22nd March 2022 and the 14th April 2022 by YouGov. There were a total of 107 respondents from small and mid-sized UK quoted companies.
For further Information please contact:
Communications Executive, the Quoted Companies Alliance
T: 020 7397 8140
About The QCA
The Quoted Companies Alliance is the independent membership organisation that champions the interests of small to mid-size quoted companies.
There are around 1,250 small and mid-size quoted companies in the UK, representing 93% of all quoted companies. They employ approximately 3 million people, representing 11% of private sector employment in the UK, and contribute over £26bn in annual taxes (source).
Our goal is to create an environment where that potential is fulfilled. We identify the issues that matter to our members, keep them informed and interact to build the understanding and connections that help our members stay ahead. For more information please visit www.theqca.com.
YouGov is an international research data and analytics group.
Their data-led offering supports and improves a wide spectrum of marketing activities of a customer base including media owners, brands and media agencies. They work with some of the world’s most recognised brands.
Their ground-breaking syndicated data solutions include the daily brand perception tracker, YouGov BrandIndex, and the media planning and segmentation tool, YouGov Profiles. Their market-leading YouGov Realtime service provides a fast and cost-effective solution for reaching nationally representative and specialist samples. YouGov’s Custom Research division offers a wide range of quantitative and qualitative research, tailored by sector specialist teams to meet clients’ specific requirements.