Higgs 'happy' with code changes
DEREK Higgs insisted he was happy with the final template of his plans to shake up Britain's boardrooms today despite controversy over whether his most contentious proposals have been watered down.
Speaking as the Financial Reporting Council published its version of the investment banker's ideas after a two-month review, Higgs said: 'It was a constructive process that has achieved a constructive result. I'm very happy with what has come out. The thrust of the recommendations are there.'
But the review carries subtle changes that reiterate the power of the chairman, not least that he can continue to chair committees set up to approve who should join a company's board.
The FRC also emphasises it is the chairman who will 'provide leadership to the nonexecutive directors' and not the senior independent director (Sid) requested by Higgs.
A restriction of the term non-executive directors can serve has been extended from six to nine years and smaller firms below the FTSE 350 are exempt from having half the board made up of non-execs.
FRC chairman Sir Bryan Nicholson said he believed Higgs's ideas would foster far-reaching changes in boardroom practice when introduced into a new combined code on 1 November.
He said this would reinforce the view that a chief executive should not become chairman and that the roles should be separate.
