Independent directors are jostling at the boarding gate
Of course, certain unlisted companies or those listed on exchanges other than NSE as well as those gearing up for listing also need to appoint independent directors, but that number will be relatively small.
The increased visibility, responsibility and remuneration of independent directors has led to rising awareness of this strategic role in Corporate India. Besides, several factors have spurred more aspirants to sign up to be independent directors. The big 'board refresh' this year-involving stepping down of independent directors who were completing 10 years (two terms) on a company's board-was expected to make way for new faces on the boards. Secondly, the need for women independent directors on boards increased.
Consequently, there has been a surge in training programmes for those seeking to be independent directors provided by private institutions, B-schools and consulting firms. Training programmes costing anywhere from ₹10,000 to a couple of lakhs are available to make aspiring executives become 'board-ready'.
«There is definitely an oversupply,» said Vikesh Wallia, managing director, boardstewardship.com-a board community platform. «There is an over-sell of training programmes. Besides, there is no data coming from IICA and MCA about the number of independent directors required and the number of new directors appointed every year. In the absence of this data, many people sign up and join promising training programmes for independent directors without due diligence on the demand scenario.»
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