The bank’s chairman has died in hospital after a sudden illness
The financier Sir Derek Higgs, who was widely regarded as the architect of modern boardroom governance, has died, aged 64.
He will be remembered for his influential 2003 report, which set out guidelines for the future conduct of chairmen and non-executive directors.
Sir Derek explained his findings at the Institute of Directors, calling for greater transparency and accountability in the boardroom, as well as formal performance appraisal, and closer relationships between non-executive directors and shareholders.
He also drew attention to the need for separation of the roles of chairmen and chief executives, and the restriction on directors chairing no more than two FTSE companies.
Gordon Brown, then Chancellor of the Exchequer, called the changes “essential” and “crucial”.
Sir Derek also called for more rigorous appointment processes, and was later dubbed “the patron saint of headhunters” after his recommendations inspired a boom in the number of non-executive positions.
Sir Derek, whose first job was at Barings Bank, was in many ways a perfect advocate of corporate governance, resigning his own position on the boards of both Egg and Allied Irish Bank to take up his final role as chairman of Alliance & Leicester.
His deputy at Alliance & Leicester, Roy Brown, praised his “outstanding contribution to British business”, describing him as “a pleasure to work with”. Brown will act as chairman until a more permanent successor is found.
Sir Derek died in hospital on Monday, April 28 after a sudden illness.
Posted 29 April 2008 : Director.co.uk