Need a new non-executive director?
Last month saw the launch of global executive search specialist RSA's new register of non-executive directors (NEDs), the first such register dedicated wholly to the life sciences. The new register aims to identify independent and experienced non-executives and bring them together in a community that facilitates networking and places qualified individuals into board vacancies with life sciences companies.
We spoke to Nick Stephens, CEO of RSA, about the evolution of the life sciences NED register, and why we need it now.
PEE: How did the idea of a register of non-executive directors (NEDs) come about?
Secondly, over the last 13 years compliance legislation has made the role of a NED much more professional, but staff turnover has not recognised this. We didn't want to allow that status quo to continue; we felt we could add value to businesses and further 'professionalise' non-executive directorships by creating this register.
Why do we need a register of NEDs that is specifically life
sciences focused, and how will you find candidates for it?
What are the benefits, to companies and candidates, of the NED register?
To find an executive director, we have to be discreet, we can't tell the executive's PA, and we may have to take several covert references for him. But if I wanted to gauge someone's interest in a non-exec position, I could just ask that person directly. I could ask his or her colleagues and PA.
A search for high-end executives typically has about 600 contacts in it, which is why it's a very expensive and resource-heavy process. The typical search for a non-exec director probably has less than 100 contacts in it; the resource we expend on doing it is much lower, so our charging should reflect that. So we deliver value by doing it at a better rate.
As far as the candidate is concerned, we are more likely to hear of NED opportunities than any one else, so we can provide candidates with access to a wider choice of suitable roles. We will also facilitate networking and produce research into the challenges and opportunities of non-executive directorship, as well as provide a degree of training. So we can give candidates access to credibility that they wouldn't necessarily have if they were doing this on their own.
How is the role of NED changing in the financial crisis?
It's part of the job of the NED to extend the runway for those companies or, in the final analysis, to protect the shareholders by mitigating the company's losses. So many companies are on a short runway; many of them could be trading insolvent. There's a big difference between running a company until the money runs out and running a company until it can pay all its bills and then close.
Obviously if you're a NED you need to be looking to the second scenario. So the NED's oversight role is more important in stressful times. It can be easy for salaried executives to forget the shareholders because they're so busy trying to save their companies.
For further information on RSA':s non-executive director opportunities, visit www.thersagroup.com/NED/
Supply Chain Strategy: Managing risk and opportunity in a changing global landscape