What’s your favourite part of being a non-executive director?

Now I’m going to take a wild guess here, that the least favourite part of a typical NED role is setting executive remuneration. To the media, and now even the government, it appears that NEDs love nothing more than awarding large pay increases, bonuses and pay-offs to executives. It often seems that investors share this … Continue reading What’s your favourite part of being a non-executive director?

Is management telling the whole story?

The company was in financial difficulties, as changing market conditions had seriously exposed the misplaced strategy. There was however no suggestion that anything improper had gone on. The external auditors were high quality, and there was a competent internal audit team with appropriate risk models. Yet something didn’t feel right. Whilst the strategy had failings, … Continue reading Is management telling the whole story?

Just say ‘No’ – assessing an offer for your company

  In previous articles, I covered how a board should react to an unsolicited approach or offer for the company, how it would value it, valuing shares versus cash offers, whether it’s friendly, unfriendly or hostile, and irrevocable commitments. Here, I am going to look at the different sorts of offers that you might receive … Continue reading Just say ‘No’ – assessing an offer for your company

What if you join a board, but have no financial experience?

One mistake that non-financial people often make is to assume that financial people both know what they are talking about and understand all the financial issues. Once you realise that neither of these may be true, you will feel less cowed by financial jargon and able to participate more freely. I have twice in my … Continue reading What if you join a board, but have no financial experience?