A FTSE250 Group Secretary writes...
Do other companies have a NED who is a practicing HR director elsewhere who sit as Chairman of their Remuneration Committee?
We have such a NED and they are also mentoring/working with our own HR Director in developing internal processes/systems.
Does anyone have a view as to whether this might cause a personal conflict for the NED in discharging their duties as they are essentially wearing two hats?
When it comes to NEDs I think there’s a fine line sometimes between “useful expertise/experience” and “interfering with executive roles/conflict”. But I would say this falls the right side of that line, and is a good thing (provided the NED is not interfering with any executive functions, or getting too “close” to the head of HR so as to affect their independent approach)
I don’t think so as long as he/she doesn’t undertake an executive role. The mentoring aspect of it is quite useful I think. In our case, we have a NED who has tremendous past/recent experience in executive roles and she certainly works very closely with the HR Director and provides plenty of advice. I don’t think it creates a conflict but it does generate a lot of work for the HR Director!