In Conversation with Tesco Boss John Allan – What is the Role of a NED?

by Mani Hayre
@Mani_Hayre
 
 
In Conversation with John Allan, Chair of Tesco, discussing the importance of NED (Non-Executive Directors) and a Board for businesses.
The Chair of Tesco made the headlines for leading the return of £585m (rates relief) back to the Exchequer.
 
What is the role of a NED or Board? Why are they needed, as they’ve been referred to as nodding heads?
It’s a very important role.
In the UK it’s about having a unity board who have joint and several responsibilities for everything that happens. They’re close to the action, and I think the challenge for non-execs is to guide, steer and support the executives, and occasionally challenge them.
It’s not intended to be confrontational, it’s about building a cohesive team and to help ensure the ship doesn’t go off in the wrong direction.
It’s quite a subtle thing, where non-execs have many interpersonal skills to be able to do this.
 
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