Why, when and how to hire a non-executive director; All Board Members “black dressing” is just Risks’ Concentration

 

Why, when and how to hire a non-executive director;  All Board Members “black dressing” is just Risks’ Concentration

A seasoned veteran can be a big asset on the board of a growing business.

 

Sharing  experience and thinking is creating value for growth, Many thanks to the author to support our way, in Malta with Maltaway, we advise and deliver Boards’ Member and NED tailored solutions, because having all the Board Members “black dressing” is just Risks’ Concentration
In a business’s early day, it’s often up to the founders to do everything – from accounts to HR, sales and marketing. Roles become more specialised as the company grows and eventually there comes a point when you need to beef up the board as well.

WHY TO HIRE A NED

Entrepreneurs know their business, and their market, inside out; there’s often nobody better equipped to handle the day-to-day management. But it can be difficult to step back and look at the bigger picture. A non-executive director (NED) can bring a fresh perspective and a less emotionally involved standpoint to the business, helping its leaders identify long-term threats and opportunities.

‘The check and balance a non-exec can bring to a business is hugely valuable, and can help prevent some of the mistakes that a lot of business leaders will undoubtedly make during their journey,’ says George Heppenstall, a director at the executive search firm Directorbank. ‘It’s not a case of bringing in somebody to tell [entrepreneurs] how to run the business, because invariably they have done a very successful job of that already. But there are those out there who can spot the fine margins that can make an impact.’

‘When I join a business it can change the whole dynamic,’ adds Jo Haigh, an experienced non-exec and author of The Keys to the Boardroom: How to Get There and How to Stay There. ‘It can professionalise the board, because if you’ve got a lot of execs who are running the business on a day-to-day then they can be very introspective. It can also bring good practice, because governance practice is something that very often execs don’t have a lot of experience of.’

WHEN TO HIRE A NED

There’s no absolute answer to this question. While having a professional board structure is a requirement for listed companies, there’s theoretically no requirement for even very large private businesses to have any NEDs.

‘It’s not really the size of the company, it’s when they feel they need something that they can’t find within themselves,’ says Haigh. ‘That could be contacts, or it could be somebody that’s going to challenge them, or it could be someone that they need to confide in or to be a mentor.’

‘It depends on the stage and development of the business,’ say Heppenstall. ‘If it’s out of the blocks and revenue-generating and profitable then obviously that’s a good foundation and a good point at which to look at this. Any earlier and you might be struggling to get someone’s engagement.’

A NED can also be a big asset if you’re keen to get venture capital firms to open their wallets. ‘If a business is looking for external investment, having somebody around the board table who has an appreciation for the business sector in which they are operating can be quite useful,’ Heppenstall adds.

HOW TO HIRE A NED

‘There’s lots and lots of ways,’ to find the right person for your board, says Haigh – including headhunters, websites and the Institute of Directors, which can search its directory and provide you with a shortlist of candidates for £100 + VAT (and Maltaway for Malta as well). ‘I think the important thing is to spread the net as far as possible,’ she adds. ‘There’s always a danger that you choose a non-exec because you’ve met them or they’ve been recommended, but you haven’t looked far enough.’

Being a NED isn’t a full-time position – you can normally expect them to commit to a couple of days per month. ‘That, broadly speaking, gets you a monthly board meeting, plus another day for prep and other such commitments,‘ says Heppenstall. Haigh says she includes unlimited phonecalls and emails (within reason).

NEDs don’t come cheap though. Heppenstall says a salaried non-exec can typically be on £20,000-£30,000 and Haigh says day rates can vary from £1,000-£3,000, sometimes higher. That being said, if they can help take your business to where you want it to be then it can be a price worth paying.

http://www.managementtoday.co.uk/news/1364618/

MFSA MALTA: proposta di regolamentazione per i TRUSTEES dei TRUST famigliari

The MFSA has issued a Consultation Document on the Proposed Rules for trustees of family trusts.

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MALTAway ti offre assistenza per investimenti e protezione del patrimonio con Trust, Fondazioni, Holding e il servizio di Directorship (con persone Italiane residenti a Malta per essere compliant con le norme fiscali internazionali) come NED (Non-Executive Director), Trustee e Foundation Administrator/Representative

Cosa fanno e come agiscono:

Both trustees and administrators are subject to fiduciary obligations which are duties of trust and confidence that are imposed on a person in circumstances where that person, the fiduciary, is bound to act for the benefit of another. A fiduciary is subject to duties of care, honesty, accountability and loyalty when exercising his functions and cannot allow personal interest to conflict with his duties

http://mfsa.com.mt/pages/announcement.aspx?id=6598

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Finding the Money in the Internet of Things

More generally, companies are still deploying IOT as an optimization technology – a technology that can incrementally, and perhaps even significantly, improve performance, but that leaves the core nature of the business untouched. Here’s an interesting thought: what about harnessing the potential of this technology to disruptentire markets and industries?

The data and insight generated from IoT, if properly harnessed, has the potential to unseat incumbents if they’re not the first to realize this opportunity. In certain markets like the automobile industry, IoT might be a catalyst for shifting from ownership to sharing models of business, disrupting the economics of traditional product vendors. Insurance companies might harness IoT to identify lower-risk customers and offer these attractive prospects much lower rates, leaving the high-risk customers to competitors.

Bottom line: there’s a lot of money to be made from this promising technology for the companies that know where to look.

https://hbr.org/2014/11/finding-the-money-in-the-internet-of-things

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Time for deflation? Yes of course for the inflated job titles in the Investment banking arena, is finally a new bubble bursting? Goldman Sachs Just Says ‘Vice President’ to Be Polite

Time for deflation? Yes of course for the inflated job titles in the Investment banking arena, is finally a new bubble bursting? Goldman Sachs Just Says ‘Vice President’ to Be Polite

Goldman’s theory, on the other hand, is that “vice president” is a “courtesy title” handed out to roughly one-third of its employees, and of course they’re not all officers

There are thousands of them, and they are called that mainly to reassure clients that the awfully young-looking person running their merger is a senior executive and global head of something or other, and can therefore be trusted to make important decisions with no adult supervision

Global (or U.S., or European, or …) head of something or other is an even more abused title than vice president. At this point people have mostly figured out that there are a lot of VPs, but the benefits of the global-head title are that:

It is unique, in the sense that there can be only one global head of any particular thing,

It is infinitely expandable, in the sense that there are unlimited things to be global head of, and

It is entirely informal and can be made up on the spot.

So, well…….time for deflation indeed

http://www.bloombergview.com/articles/2014-09-04/goldman-sachs-just-says-vice-president-to-be-polite?alcmpid=view

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