Tuesday, April 3, 2012

//NEWS: James Murdoch No Longer Head Villain of BSkyB

James Murdoch

While people are asking the question of what will happen to the Sky Company (British News Giant) as the Murdoch son goes from being Non-Executive Chairman to Non-Executive Director, I ask a more daunting question: What exactly is a f***ing Non-Executive Director?

I looked it up on wikipedia and I got this rather vague explanation as to what an NXD does (not to be confused with Independant Directors).

"Non-executive directors have responsibilities in the following areas, according to the Higgs Report, commissioned by the British Government and published in 2003:
  • Strategy: Non-executive directors should constructively challenge and contribute to the development of strategy.
  • Performance: Non-executive directors should scrutinise the performance of management in meeting agreed goals and objectives and monitoring, and where necessary removing, senior management and in succession planning.
  • Risk: Non-executive directors should satisfy themselves that financial information is accurate and that financial controls and systems of risk management are robust and defensible.
  • People: Non-executive directors are responsible for determining appropriate levels of remuneration of executive directors and have a prime role in appointing, and where necessary removing, senior management and in succession planning.
NEDs should also provide independent views on:
  • Resources
  • Appointments
  • Standards of conduct
Non-executive directors are the custodians of the governance process. They are not involved in the day-to-day running of business but monitor the executive activity and contribute to the development of strategy."  -http://en.wikipedia.org/wiki/Non-executive_director

So basically, someone that sort of lays around the shadows with very little risk but a high level of power over who gets what positions and whatnot. Hmmm...

Via: http://www.guardian.co.uk/media/2012/apr/03/james-murdoch-bskyb-live