Exec and Non Exec

[fourstardan]

Hi,

Can you be an Exec director and then a NED at the same time?

Thanks

[NDA]

fourstardan said:

Hi,

Can you be an Exec director and then a NED at the same time?

Thanks

Of the same company?

No.

If it's a different company, yes. I've done it.

[WindyCommon]

Yes. But only if the two roles are with different companies…

[NDA]

WindyCommon said:

Yes. But only if the two roles are with different companies…

Also worth noting that some executive positions do not allow for NED roles in other businesses - particularly in the same industry. It will depend on the employment contract/shareholders agreement etc.

However I have had people on my board as NED's who were employed elsewhere both as NED's and execs. I have done this too.

But the point is, it can be done.

[Countdown]

fourstardan said:

Hi,

Can you be an Exec director and then a NED at the same time?

Thanks

Strictly speaking you could be 5 Exec Directors and 14 non Exec Directors as long as they were all for different companies.

I work in Finance and it's common for retired FDs to have parttime Exec roles (for organisations that are too small to have a full time FD/CFO) as well as sitting on the Boards of varying organisations as Non Exec roles.

ETA to become an NED you really need to be an acknowledged expert in your field and, ideally, have a good professional network.

Edited by Countdown on Monday 5th August 17:32

[fourstardan]

Ok thanks, its our CFO who has just joined as NED at another financial services (different line of business).

I wonder if he is on the way out to part time retirement!

[Countdown]

Being a part time NED isn’t that hard to fit around a full time job. If you’re able to work flexibly (longer days offset by shorter days, compressed hours, using up annual leave) then you can usually attend Board meetings quite easily. They normally send you the meeting papers a week in advance so you’ve got plenty of time to read them, email in any questions you might have and then turn up for the meeting.

It gets harder if you get co-opted onto sub-committees but, if it’s something you’re passionate about, it’s good fun.

[InformationSuperHighway]

fourstardan said:

Ok thanks, its our CFO who has just joined as NED at another financial services (different line of business).

I wonder if he is on the way out to part time retirement!

Perfectly normal and very common at C level in my experience.

If this is a new thing for the CFO I wouldn't see it as a door to retirement either.

[fourstardan]

Organisation and CEO probably supports it then.

I'd like to be NED, has anyone not been an Exec and just done NED?

[NDA]

fourstardan said:

Organisation and CEO probably supports it then.

I'd like to be NED, has anyone not been an Exec and just done NED?

NED's normally need to have board experience - it is generally required in an NED role.

In my case I no longer wish to work full-time and am only an NED.

Many NED's have 3, 4 or more NED roles.

[Countdown]

fourstardan said:

Organisation and CEO probably supports it then.

I'd like to be NED, has anyone not been an Exec and just done NED?

If you don't already have Board experience you'd need to be a recognised expert in your field (and that "field" would need to be really important for the Organisation you wanted to be a NED for)

Just to add - you don't necessarily need full Board experience - it's possible to become an NED for a smaller organisation if you're only a Senior Manager.

[gangzoom]

fourstardan said:

Organisation and CEO probably supports it then.

I'd like to be NED, has anyone not been an Exec and just done NED?

Would you not start by having a chat with the chairman of the organisation you want to be a NED?

[gangzoom]

Countdown said:

If you don't already have Board experience...

I've found there is a massive gulf between sitting in a board room listening to other's make tough decisions and than finding your self been asked to make a tough decision. I honestly don't know how you can learn this kind of stuff apart from stepping up and doing it, the implications of making the wrong call at times however seem massive with so many unknown.

I'm always amazed on how the really good NEDs and Exces are able to challenge me on data I've presented in a way that I was totally blinded too, even though it's data/paper I've spent a stupid amount of time work on. Again I suspect you cannot these skills sets this without doing it!

[crofty1984]

It's something I'd like to do in the future, but right now I don't have the board experience, I'm mainly project/programme manager biased. Wonder if it might be worth looking into trustee type roles for local charities to get some more experience. I quite like the idea of doing NED work for a few different companies one day instead of a full time job for one.

[fourstardan]

gangzoom said:

I've found there is a massive gulf between sitting in a board room listening to other's make tough decisions and than finding your self been asked to make a tough decision. I honestly don't know how you can learn this kind of stuff apart from stepping up and doing it, the implications of making the wrong call at times however seem massive with so many unknown.

I'm always amazed on how the really good NEDs and Exces are able to challenge me on data I've presented in a way that I was totally blinded too, even though it's data/paper I've spent a stupid amount of time work on. Again I suspect you cannot these skills sets this without doing it!

It's all about exposure gained and experience.

I challenge incredibly intelligent developers, it scares me how blind and naive they can be but my experience in seeing incorrect decisions made over the years provides me with enough drive to continue challenging in conversation.

[Dynion Araf Uchaf]

fourstardan said:

It's all about exposure gained and experience.

I challenge incredibly intelligent developers, it scares me how blind and naive they can be but my experience in seeing incorrect decisions made over the years provides me with enough drive to continue challenging in conversation.

surely that's about having a direction for the business, and the 'chinese whispers' process of filtering that down to the troops has meant that the solution presented doesn't fit the direction as stated.

[NDA]

Dynion Araf Uchaf said:

fourstardan said:

It's all about exposure gained and experience.

I challenge incredibly intelligent developers, it scares me how blind and naive they can be but my experience in seeing incorrect decisions made over the years provides me with enough drive to continue challenging in conversation.

surely that's about having a direction for the business, and the 'chinese whispers' process of filtering that down to the troops has meant that the solution presented doesn't fit the direction as stated.

NED's often bring tried and trusted business solutions from boards they've sat on in the past - they also ask 'why do we do it that way?' a few times to learn about a process which, when examined, can sometimes be changed for the better. Being a 'non' executive is also quite liberating, you attend once a week or once a month (whatever) and have an unencumbered helicopter view of the business without the politics.

Perhaps it's old fashioned of me, but I did have occasional 'board advisors' (not NED's) who might come to 4 out of 12 board meetings - it was a good introduction for them and us for a possible NED appointment.

The other thing I'd add is that smaller companies tend to have a very low churn on board roles.

[Mr_Megalomaniac]

fourstardan said:

Ok thanks, its our CFO who has just joined as NED at another financial services (different line of business).

I wonder if he is on the way out to part time retirement!

My dean of finance at uni, the prof, was NED on 7 different boards as well as owning a game farm.
"It's like a permanent warm bath", as the saying goes. Very good retirement.

[fourstardan]

With the amount of fk up's I've seen by C levels blagging it I think I could at least get a year or two out of being a blagger NED

[gangzoom]

NDA said:

NED's normally need to have board experience - it is generally required in an NED role.

Question about board experience, had my appraisal and the boss recons it's time I consider stepping up. Currently only been to board as dep for the boss a couple of times when they have been on A/L, so did behaved in a way any sane person with a touch of imposter syndrome would do.

Stepping up means prepping and presenting to the board acting as an exc instead of a dep, but the boss will be there watching, presumably ready to step in if I say something utterly ridiculous. However at the same time I'm not my boss, I have my own ideas which might be different from theirs, and I'm NOT a YES guy, I say/do what I think is the right thing for the organisation - though clearly sometimes (often?) I might get the wrong end of the stick.

Any advice? How do you balance between been a valuable contributor to the senior leadership team, versus coming across as a disruptive individual who shouldn't be allowed near a project paper let alone the board room?

Edited by gangzoom on Saturday 24th August 05:24