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Article: Benefit from having a non-executive director: Amanda Merron helps you decide whether to pay for the advice of an external board member, as research shows they can be key asset in troubled times. (Design Business).
- Article from:
- Design Week
- Article date:
- August 23, 2001
- Author:
CopyrightCOPYRIGHT 2001 Centaur Communications Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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I RECENTLY dusted off some research that my company commissioned in the mid 1990s, which looked at the particular characteristics of companies that performed best during that recession. There were a number of factors that influenced company performance, including the directors' commitment to specific policies, innovation and a focus on survival.
But there were two particularly telling features. First, profit margins were higher among companies where day-to-day management was conducted by more than one director. Second, profit and margins were significantly higher among companies employing non-executive directors. This was the case in 42 per cent of those ...