State roles ‘damaging’ say directors

THREE out of five directors in Ireland believe a position on a State Board may cause them personal or reputational damage, a survey has found.

The Institute of Directors (IoD) Ireland has revealed 60% of bosses see this issue as the main deterrent when considering a position on a State body. Nonetheless, its survey found that nearly 72% of directors and business leaders would still consider applying for such a role.

The sentiment towards the Code of Practice for the Governance of State Bodies amongst directors was mostly positive, with almost 73% saying it has been effective in supporting good corporate governance standards in State organisations and 74% saying it has improved governance standards since its revision in 2016. This Code places a ‘greater emphasis on accountability and transparency’ on State boards.

It also outlines that board members should be available to attend 100% of meetings and attendance should be considered when the member is due to be re-appointed.

The survey, undertaken between February 20-29, assessed its members’ attitudes to State Board governance, and was completed by 382 directors and business leaders. ‘The results of this survey are very thought-provoking and shine a light on the reputational concerns directors now have when considering serving on State Boards,’ said Caroline Spillane, IoD Ireland chief executive.

‘There were also concerns raised on the recruitment process to State Boards, in respect of the relevant experience and skills,’ she said.

Ms Spillane said further research will provide ‘practical recommendations’ to support the Government in enhancing the governance of State agencies.

It’s understood candidates for State boards are asked to sign a declaration that there is nothing in their past that will cause bad publicity for them or the organisation they’re appointed to.