Based on J. Solomon’s book “The Role of Boards in Corporate Governance,” I believe that non-executive directors on the company’s board have an important role to play in the operation of the corporation. Studies have revealed that non-executive directors play a role in the success of a company. As such, the non-executive board members are usually involved in monitoring the other board members. As such, the members of the board have the role of governing the corporation, while the non-executive board ensures that the management of an organization is undertaken as required. Conventionally, executive members cannot supervise themselves. Therefore, it is important to have the non-executive board checking on their actions and decisions. Research by the investment institutions of the UK recommended the need for the existence of non-executive board members.
The non-executive board members are responsible for good governance in any corporation. Without them, the executive directors’ powers and salaries would be unchecked. Equally, the executive directors could engage in misappropriation of resources of the organization since they are not answerable to any person. Academic research has proved to the greatest extent that non-executive boards have an important task of ensuring effective management. The academic research has used the chief executive turnover as the main indicator in their analysis. In the analysis, the frequent turnover leads to better management of the finances of an organization. Academic research shows that an increase in the ratio of non-executive members within the board leads to efficient supervision and good governance in an organization.