After qualifying as a chartered accountant in 1967, I left the profession to become Chief Accountant of the UK subsidiary of a Canadian investment bank. This was an exciting period in the early days of the Eurodollar market and at a time when interest rates were rocketing. I left to join the Commercial Union Group in 1970, initially working in corporate finance and eventually became Joint Group Financial controller. At one point I acted as group financial spokesman, dealing with the media and market analysts. From 1986 to 1999 I was a director of the CU’s investment management arm (now Aviva Investors) with oversight of the general insurance fund investments, including the treasury function. At the same time I acted as secretary of the group balance sheet management committee which managed the worldwide currency, interest and investment exposures. My increasing involvement in treasury issues encouraged me to apply to join the ACT, both to increase my technical knowledge and to be able to network with other treasurers. After a period as a consultant, I took up the role of Secretary of the Lord Chancellor’s Strategic Investment Board, during which time I started down the non-executive director path. I am a Fellow of the ACT and have been a member for over 25 years.
Being my first involvement in the Civil Service, I had to cope with life at a rather different pace where the bureaucracy and politics required more diplomacy and persuasion than in the commercial world. The Board advised on the investment of funds held in court, primarily for vulnerable persons such as minors and adults who lacked capacity. My most notable projects involved tenders for the establishment of a bespoke collective equity investment fund and the appointment of stockbroking firms as fund managers of individual accounts.
I’ve had quite a number to choose from, but perhaps the one that stands out was the establishment of a Luxembourg-based UCITS operation.
To be an effective NED one must be able to think strategically, and above all be independent and objective, as well as a good communicator. Relationships are critically important, especially with the executive team, but one’s own executive instincts need to be left behind, remembering that it is they who are running the day to day business.
These sorts of organisations can benefit from the commercial, financial and, in particular, the risk management experience that treasurers have to offer – but there will seldom be the requirement for their specialist skills with regard to most financial market instruments.
Make sure that you thoroughly research the sector that you are interested in joining as an NED, take advantage of NED training seminars and seek the advice of experienced NEDs. Be prepared for the time requirement to be rather more than that advertised – the papers for meetings, especially in the public sector, can be quite voluminous. Where possible, I would encourage people to seek their first NED role while still working as an executive rather than waiting until after they retire.
I have been an active chess player for most of my life, playing at club and county level, and I think this has given me the discipline to think ahead. I have also been very involved in other social walks of life, such as Round Table and Rotary, and more recently as a Humanist. I served for a period as a Trustee of the British Humanist Association (now Humanists UK) and am very active in helping to organise the lively Central London Humanist Group. Family is also an important part of my life – I have ten grandchildren!
Try to be open and honest.
Difficult to say, but one who stands out is John Linbourn, who was a main board director of the CU Group and who had an outstanding skill in managing and motivating people. We later had the opportunity to operate together as NEDs for a short while.
Enlightenment Now by Steven Pinker, regarded as one of the world’s foremost influential thinkers. As a sequel to his masterly The Angels of our Better Nature, he explains why he believes that we are living in the best times that human society has ever known.