What to consider when hiring a NED or Chairman
One consideration that is often important when finding a NED or Chairman is finding a senior executive with experience of building a similar kind of company – in terms of sector, business model and company stage.
Through their experience as an executive (typically as a CEO or senior executive) a Chairman or NED should be able to lend valuable experience and wisdom about how to grow a particular type of business. They may also bring a valuable network of potential customers, partners, employees and service providers in the sector.
In the context of a venture capital or private equity backed company, a NED or Chairman would often ideally have experience of working with VC or PE investors previously. Managing relationships with key shareholders is a key responsibility for any CEO and can be a source of stress. Any help or advice a board member can give in order to help manage investors effectively can be most welcome.
Board members are also there to ensure governance, compliance and also to challenge members of the executive team when necessary. They have an important responsibility to the shareholders of the company to ensure that the business is run in an effective and ethical way.
NEDs and Chairmen have an important role to play in helping to define the commercial and product strategy of a company. They can also help to mentor a CEO and provide them with support.
Sometimes finding a NED or Chairman who has been a CEO recently might be preferable to one who has had a portfolio of NED roles for a long time but few executive roles. A more recent CEO may have a deeper understanding of the dynamics of their sector. The technology sector evolves quickly and there can be a lot of value in recent experience as a senior executive.
Equally, experienced NEDs and Chairman have seen many different kinds of business and environment and can use their extensive experience to help avoid mistakes and pitfalls that less experienced executives might miss.
About Neon River
At Neon River, our track record as a NED and Chairman executive search firm sets us apart from our competitors. We work closely with our clients to understand their specific needs, whether that’s finding a NED with deep sector expertise, experience navigating investor relations, or a Chairman with the ability to mentor an entrepreneurial CEO.
Peter Franks is the founder of Neon River and an expert in advising technology companies how to find and attract leaders. With twenty years’ experience in executive search he has deep experience of helping technology companies to craft world-class headhunting processes.