Non-Executive Director Trends In Today's Market

After recently moving over to head up N.E.D. recruitment, I have spent this year really understanding N.E.Ds, where they sit in the business and what businesses look for when finding their perfect hire. With the market always changing, it enables me to get to the crux of Non-Executive Directors through the eyes of C-suite talent. 

One of the main points I have noticed is that for a long time there has been a perception that Non-Executive Directors come to the role after 30+ years of C-Suite experience, but times are certainly changing. 

We have seen Non-Executive Director roles change over the recent years and boards are now seeking credible candidates with expertise that fill specific gaps, broadening diversity & inclusion, linked with an ability to contribute broadly. This comes from both successful young entrepreneurs as well as executive level candidates. 

What are we being asked for most? 

Taking on a position as a NED, you are bringing an external perspective to discussions and decisions around the table.  As an independent, having credibility within the industry is going to determine your path to a successful appointment, asking yourself questions such as: how well connected am I? Do I bring the specialist and invaluable knowledge required? Can I devote sufficient time and effort to fully understand the business? Can I make the business credible to potential investors? These are all elements the current board are considering when selecting the best possible hire.   

We have observed that Business’s acquiring NEDs are typically attracted to Entrepreneurs, Founders or CEO’s of globally recognisable brands. This allows businesses to obtain a dynamic mix of skills across multiple areas of the business such as marketing, growth, or governance from just one person. In the eyes of the businesses, individuals with large brand experience will have been involved in extensive growth strategies, company exits, investor relations and multi-million-pound expansions all of which are highly sought after qualities of a N.E.D. 

Where are we seeing successful appointments?

Since the pandemic, we have seen an increase in start-up/ SME’s taking on N.E.D.’s in order to streamline the business to attract potential investors, set their business up for global or national expansion and fundraising. 

Successful appointments not only come down to experience, but aligned culture fit. Although a N.E.D. is in the business for an average of 2 days per month, ensuring there is a common ground with values, culture and ethics matches for a successful hire. 

What do the NEDs say? 

We conducted a survey in August 2023 with the collaboration of over one hundred of our N.E.D. contacts capturing thoughts and opinions on various aspects of non-executive directorship. 

We utilise the feedback as industry leaders to guide and advise companies looking for a N.E.D., on how to acquire the best for their business.

Results can be viewed at: https://www.corecruitment.com/news/ned-survey-the-results 

If you are looking for a N.E.D. to help elevate your business, or you’re a N.E.D. looking to broaden your portfolio don’t hesitate to get in touch.

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References:

• https://www.investopedia.com/terms/n/non-executive-director.asp
• https://dynamicboards.co.uk/blogs-what-is-a-non-executive-director/#:~:text=As%20a%20non%2Dexecutive%20director,experience%20you've%20had%20elsewhere.
• https://firstflightnonexec.com/candidates/the-ideal-non-executive-director
• https://www.iod.com/resources/information-and-advice-service-ias/ned-hires-and-roles/