FT BOARD DIRECTOR PROGRAMME NEWSLETTER
February 2026 Edition - Written by Lottie O’Conor
"In today’s complex environment, boards must evolve from a model of periodic oversight to one of active, informed, and adaptive stewardship"
The Rt Hon. Baroness Evans
The role of NEDs industry-wide has changed almost beyond recognition since it was first defined by the 2003 Higgs Review. This report from the IoD Commission makes for essential reading for any board members, current or prospective. There are some voices out there who feel that NEDs are losing their relevance, that for some the role is more of a status symbol (both for the company and the appointed individual) than a position with real impact. The IoD report directly contradicts this, highlighting the numerous benefits of board members stepping up and moving on from 'periodic oversight' to a system of active, engaged input. Simply put, NEDs are more important than ever - and their recruitment, process and remuneration should all reflect this.
One of the most pertinent findings of the report was that 'meaningful change is most effective when led by boards themselves rather than imposed by regulation.' Many of the catalysts that have changed the shape of global business - and therefore the boards that operate within it - are led by forces outside of individual control: political volatility, the rise of AI technologies and growing public scrutiny.
In these uncertain times, a traditional approach to hiring and running a board are no longer fit for purpose. The pipeline of former executives and 'trophy appointments' must step back in favour of a less conservative approach that favours diversity and independence of mind. An agile board that can think on its feet, rather than one bogged down with unnecessary, outdated process is one that will thrive in the current climate.
A NED role should also not be seen as the final destination on any career path - NEDs must be open to continued learning; be engaged, curious and willing to hear differing points of view. Key to this is another of the report's recommendations, that 'NEDs need to be remunerated in a way that better reflects the complexity, time demands, and responsibilities of the role.