Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
In July 2018 the revised UK Corporate Governance Code 2018 (UKCG Code) was published, which applies to accounting periods beginning on or after 1 January 2019. Amongst the recommendations is that the chair should not remain on the board longer than 9 years from their date of appointment to the board. Where this is not the case, the FRC states ‘this should be supported by comprehensive explanations which will help investors and other stakeholders better understand the long-term succession planning strategy.’
Market Tracker has conducted research into chair tenure periods across FTSE 350 companies with a financial year ending 1 April 2018 - 31 March 2019 (excluding closed ended investment funds). The data showed that 33% of companies have a chair who has reached or exceeded the recommended tenure period, with a further 10% approaching the end of the recommended period within the next two years.
Of the company chairs who reached or exceeded the recommended tenure limit of 9 years, 12.8 % had been on the board for over 20 years. All 3 chairs that our research indicated had been on the board for over 40 years were involved in the founding of the company.
In several cases our research showed that although companies had only recently appointed their chair, they had already reached the 9-year point since the tenure period begins from the date of appointment to the board. A notable example is Crest Nicholson Holdings plc, whose chair Stephen Stone was appointed to the board in January 1999 yet was appointed as chair in March 2018. It will be interesting to note how companies in this position respond to the code changes next season, although it should be noted that the nine-year period ‘can be extended for a limited time, particularly in those cases where the chair was an existing non-executive director on appointment’.
Our research determined that disclosure in relation to chair tenure had been made when one of the following statements
Access this article and thousands of others like it free by subscribing to our blog.
Read full article
Already a subscriber? Login
Market Tracker is a unique service for corporate lawyers housed within Lexis®PSL Corporate. It features a powerful transaction data analysis tool for accessing, analysing and comparing the specific features of corporate transactions, with a comprehensive and searchable library of deal documentation across 14 different deal types. The Market Tracker product also includes news and analysis of key corporate deals and activity and in-depth analysis of recent trends in corporate transactions.
0330 161 1234