Dissecting non executive director nomination, selection and appointment processes

Sifile, Obert ; Suppiah, Susela Devi K ; Chavunduka, Desderio (2015-05)

Article

Due to the continued failure of companies in Zimbabwe and the world over, this paper sought to understand how non executive directors who preside over these failing companies are nominated and selected to sit on boards of directors. n interpretive and qualitative enquiry using forty two (42) interviewees purposively selected from among corporate governance practitioners was carried out. Semi structured interviews and document review were mainly used to gather data. Opinions of various people were also sought from Social Media like LinkedIn, NVivo, Researchgate and @cut intranet. Content from social media discussions was saved in folders in NVivo software through the NCapture function. The study established that when selecting directors interests of all stakeholders need to be considered, selected non executive directors serve interests of those who nominated them, chairpersons of boards and CEOs nominate board members at the expense of shareholders. The study recommends that a skills matrix is required before nominating board members. Vacancies on the board should be advertised to tap from a large pool. Ethics in leadership was found to be basis for cultivating leaders with repute who are not selfish and can take companies to greater heights. Abiding by the Code of Corporate Governance and shareholder activism would improve the process of selecting non executive directors.

Collections: