The Institute of Directors hopes framework will improve director quality

7 August 2016

Editor

EU regulation
iod logo

With a backdrop of damning reports from MPs published  last week on the demise of the retailer BHS and on poor working practices at Sports Direct, which both identified weak corporate governance as partly to blame for company failures, the Institute of Directors (IoD) has launched its Director Competency Framework which it said sets out the knowledge, skills and mind-set that a director needs to perform effectively as a board member.

The IoD said the framework was based on consultation with high-performing directors and boards, alongside research and best practice distilled from the IoD’s extensive experience of working with senior leaders around the world for more than 110 years. The framework places traditional commercial expectations alongside a broader mix of behaviours and skills. Knowledge of finance and business strategy are put on the same level as the ability to encourage diverse views, political astuteness and decision-making in the face of uncertainty. The IoD added that the competency framework is the first of its kind in the world to apply to directors of companies of all sizes and sectors, including listed and unlisted companies, and not-for-profit organisations.

Lady Barbara Judge, chair of the IoD, said,“We need to rethink what we mean by good leadership in business in light of recent corporate scandals and the EU referendum campaign, in which the voices of companies were often dismissed. The definition of a good director must be expanded to encourage more diversity of thought in boardrooms, as well as better sensitivity to the cultural and political environment in which the company operates.

“It has never been more important for directors to be able to understand and fulfil their responsibilities with confidence and clarity, and yet their own learning and development needs are often overlooked. This framework provides an ideal blueprint for the director’s professional growth.”

The IoD’s Royal Charter, granted in 1906, instructs the institute to “promote for the public benefit high levels of skill, knowledge, professional competence and integrity on the part of directors”. The competency framework is available online for free and the IoD hopes that this will give all directors and boards the chance to review whether they are performing at the right level.

Latest News

SHareholder meeting

Accountability Versus Allocation: Who Is Corporate Reporting For?

SHareholder meeting

SFDR Review Moves Forward, But Key Questions Remain for Investors

SHareholder meeting

German governance code reform: Minerva supports simplification, but draws a line at investor visibility

SHareholder meeting

FRC’s new regulatory approach signals a shift from rule-making to market stewardship

SHareholder meeting

Shein lists in Hong Kong at reduced valuation after protracted IPO journey

SHareholder meeting

SEC sends executive pay disclosure overhaul to White House for review

Featured Briefings

Minerva Briefing

Shareholder Proposal Voting Trends 2026 H1

Minerva Briefing

Virtual-Only AGMs

Minerva Briefing

UK Proxy Season Review 2026

Minerva is a global provider of sustainable stewardship solutions with over 30 years of expertise. Minerva empowers investors by providing essential tools, including ESG research and data and expert insights, enabling them to navigate the intricate and ever-evolving landscape of stewardship and proxy voting, whilst ensuring their decisions are well-informed and aligned with sustainable principles.

Related Stories

Proxy Voting Review 2026

Minerva proxy update: Governance reforms, vote no campaigns and AGM results

July 3, 2026
Read More

Minerva Proxy Update

June 12, 2026
Read More

Starbucks’ Shareholder Showdown: Investors Issue ‘Vote No’ Campaign Against Director Duo

February 23, 2026
Read More

Taking Tesla to Task: Shareholders Rally Against Musk’s Pay Package

October 3, 2025

Jack Grogan-Fenn

Read More

Going Nuclear: Japan’s Electric Giants Face Shareholder Pressure

June 13, 2025

Editor

Read More

Netflix AGM Shock: Shareholders Vote Out Lead Director

June 11, 2025

Jack Grogan-Fenn

Read More