THE EVOLVING ROLE
OF THE INED
JOHN HARTY
Harty International Executive Search
John Harty
• A look back to 2008
• Where are we now today
• What does the future look like
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Limerick
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Dublin
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Harty International Today
Harty International
Global Locations
• Dublin
• London
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Germany
China
South Africa
USA
Each office focuses its business on
NED appointments
16 locations globally
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Pre 2009
2009 - 2015
• Senior management
• Executive Roles
• Occasional INED posts
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50% INED
50% CXO
90% Financial Services
10% Indigenous PLC Entities
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2009 - 2011
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The INED was born!
• NED no longer the NED
• NED was now the INED
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Technical Specialist on Financial Services Boards
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Audit Chair
Risk Chair
Technical Specialism – Actuarial or Product Specialist
in Insurance sector
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2012 - 2015
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Diversity Survey by…
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Most directors want more diversity on corporate boards
THE majority of company directors in Ireland feel there are
imbalances regarding diversity, expertise and age of those on
corporate boards
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Most directors want more diversity on corporate boards
The study also found that 82% of respondents feel there is a
disparity between men and women at the board room table
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Most directors want more diversity on corporate boards
GENDER QUOTAS:
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43% of Irish directors are in favour of the introduction of gender
quotas at the boardroom table
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36% feel it would have a negative impact
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21% were undecided
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2012 – to date
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Choosing the board You would like sit on….
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Please list in order of importance each of the following
factors when considering a board position
Please list in order
of importance,
where one is the
most important and
5 is the least, each
of the following
factors when
considering a board
position:
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Research Findings
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Since 2008 Corporate Governance has developed and moved centre stage
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The calibre of INED has increased significantly
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The role of the specialist INED is clearly defined
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Since 2012 we have seen a significant move towards balance at the board room table
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We have seen increased and proactive steps towards diversity
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Increased awareness re Technology, Digital, Customer
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Questions Asked in Board Room today:
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Who is the Digital INED at the board?
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Who is the Technology INED ?
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Who understands the customer clearly?
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Who on the INED team can provide an alternate sector insight on customer
…. Who can challenge the status quo !
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The Future
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The Technology expert at the board table
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Diversity a constant theme: Sectorial; Specialist; Generational; Digital; not just Gender !
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Induction programmes & ongoing training for INEDs and Chairmen
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Changing Regulatory Environment a constant theme – multijurisdictional
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Enhanced Regulation which is more business enabling
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What else have we learned…
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Adaptability of the INED
• ability to adapt to change in an ever changing global & consumer
market driven environment
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Boardroom Evaluation & Assessment
• regular re-evaluation & monitoring of the board room team and the
balance of the NED and INED team
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The Regulator and the board
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In the past much of the onus would have fallen on the CEO, today there is a
big responsibility placed with the Chairman to develop relationships with the
regulator, which are based on a strong trust.
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With significantly enhanced regulation – the Chairman must be able to
demonstrate that INEDS and Committee Chairs aren’t just doing a “rubber
stamping” process, but are actively engaged in their roles.
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Managing the Board – The Chairman
Attracting the best INEDs – INEDs are exposed to far greater risk today. To attract
the best, remuneration must reflect this level of risk, but the Chairman must also
create an attractive environment at the board room.
Focus on Strategy – While regulatory requirements must be adhered to, it is
imperative that the Chairman establishes a structure that allows the board to focus on
strategy.
Committees - It was agreed unanimously that committees should reflect the
composition of the main board, in terms of viewpoints, background, experience etc.
and that the Chairman should delegate to these committees via the relevant chairs.
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White Paper Series…
The Future of Financial Services Boards
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Effective Alignment of Non Executive Directors
The Role of the Chairman
Both whitepapers available at the rear of the room.
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Thank you
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John Harty
Director – Harty International
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