Shortage of non-executives ahead, warns top headhunter

FTSE 100 companies face a serious shortage of new non-executive directors, leading City headhunter Norman Broadbent warned today.

It said that in the wake of the Walker Report and the changes it caused to the Corporate Governance Code, companies will be increasingly competing to attract the best outside directors.

The headhunter warned that the new rules, which call for continual training and testing of non-execs, are likely to make many of them decide that the jobs isn't worth the money they are paid.

Chief executive Andrew Garner said: "The Code was drawn up with the best of intentions but it will cause an acute shortage of non-execs at FTSE 100 companies. Plcs will be increasingly in head-to-head competition with attractive and less onerous roles in the public sector."

Broadbent also said that under the new rules, which say that non-execs should serve no longer than six years, one in three of the FTSE 100's current crop should either step down or "face rigorous review".

On top of this, the one in 10 non-execs who have served more than nine years would now be considered to have lost their independence.

It will also become almost impossible for non-execs to serve on more than one FTSE 100 board where 65 are currently on two.