Companies and other entities have been urged to always have much respect for non -executive directors for the job they do.
A non-executive director is a member of the company’s board of directors who is an independent adviser and is not part of the operations of the company.
Speaking during the launch of the fourth edition of the annual Non-Executive Directors (NED) Awards at Sheraton Hotel Kampala, the CEO League of East African Directors, Phiona Nabasa Wall said since non-executive directors are never paid and have no stake in company and yet the level of liability for the decisions they make is high , it is high time they are accorded the respect they deserve.
“Most of these non-executive directors have lived long lives, have huge portfolios and you might not be able to afford to pay them a salary, but for that time they give, they make decisions that bring in a lot. They need to be recognized,” Nabasa said.
She said the NED awards are meant to appreciate outstanding non-executive directors for a great job.
“We don’t have many rewards for non-executive directors. Directors get heavy payments, have nice packs that come with the job, shareholders get dividend that comes with an interest but we are not seeing what the non-executive director gets. So, NED awards want to incentivize, promote and give a platform to those that have done well to reward them but also encourage the young ones to come up and give off their time.”
She also castigated the clashes between non-executive directors and those with stakeholders in companies and businesses.
Nabasa emphasized the crucial role of non-executive directors in the life of a business.
“Non-executive directors exist to protect organizations from weaknesses of their owners. Sometimes you have to have an arm’s length relationship with the organisation in order to work in its best interests. There is always interests at stake of shareholders, organisation and those of the beneficiaries like customers, clients, suppliers or staff and in order to ensure all these interests are made, this is where non-executive directors come in.
She explained that non-executive directors are free from any incumbrances, bias and conflicts and that this enables them to serve the companies or organisations diligently.
According to Nabasa, this year’s NED awards will recognize outstanding non-executive directors, noting that this year they are adding two categories of the most supportive CEO and most supportive company secretary.
“We want to reward to rewards CEOs that ensure non-executive directors have all the information and facilitation to ensure their work is done well and decisions they make are for the good of the organisation . The company secretary is the spirit of the boardroom and can determine how efficient things are to be run but have never been recognized. We want to recognize them .”
This year’s NED Awards will run under the theme; Visionary leaders “A celebration of excellence in the boardroom.”
The awards ceremony is scheduled for November 28, 2024, at the Sheraton Hotel, Kampala.
