Non–executive Directors on Boards in Ireland: co–option, characteristics and contributions

This paper reports research conducted to analyse the selection and characteristics of non–executive directors in Ireland. It links these themes to the three roles of the board (agency and control, strategic decision and policy support, resource acquirer). The study was carried out through in–depth interviews and repertory grids with 26 prominent non–executive directors and chairmen. The study confirms that non–executive directors are co–opted primarily through “the old boys network”. The repertory grid showed that, according to the study participants, the most important characteristics of effective non–executive directors were: (i) incisive thinking, the ability to size up a complex issue clearly, (ii) the ability to make a beneficial contribution to the company inside and outside the boardroom, and (iii) practical business experience. Interpersonal skills, international experience and lateral thinking were less prominent. The cognitive process structures of the repertory grids revealed remarkable homogeneity among the study participants in their way of thinking about the whole issue. The repertory grids showed a positive relationship between the participants’ ideas of what the “ideal” non–executive director is like, and themselves, indicating good self–esteem and satisfaction with themselves as non–executive directors.