Headhunters may get to access independent directors' databank
independent directors and aspirants to headhunters to make it easier for companies to hire such key personnel to their boards, Ajay Bhushan Prasad Pandey, chairman of National Financial Reporting Authority (NFRA), the country's audit regulator, told ET.
On August 2, Pandey huddled with top executives of 17 major executive search firms, including Korn Ferry, Egon Zehnder, ABC Consultants, Kestria, Pedersen & Partners, DHR Global, Boyden, Sheffield Haworth and KPMG. «We received a very enthusiastic response from them,» he said. «They were also asked to suggest ways to further bolster the data bank and its applicability.»
Pandey also heads state-run Indian Institute of Corporate Affairs (IICA), with which all independent directors and those aspiring to take on such roles are mandated to register.
At present, only companies are allowed to access this data bank for a nominal fee. But since large listed companies and conglomerates often outsource to search firms the job of due diligence of potential candidates, IICA is seeking to make the data bank available to these entities as well.
Nevertheless, most companies are currently using the data bank to obtain crucial details about independent directors.
The latest plan is expected to widen the universe of candidates, make it easy to choose the right candidates with the right experience, and reduce the possibility of too few people serving on the boards of too many companies, experts said. Also, it will make it more convenient for companies to get more female independent
