Corporate governance rules hit number of executives

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The Independent Online

The number of executive directors on boards of public companies is shrinking fast as corporate governance rules hit home. The ranks of executive directors at FTSE 350 companies have shrunk for the fifth year running, a survey by Deloitte shows.

Groups have shed almost 360 executive directors since 2002 as they have implemented governance rules requiring half of the board to be independent directors, Deloitte said.

"This changing shape of the board can be a positive thing, leading to more focused and high-quality debate," said Carol Arrowsmith, head of Deloitte's remuneration team. But she said a lack of executives on the board could lead strategy to be decided in executive meetings, leaving non-executives out of key decisions.