After two decades in the world of investment banking, Rupal Patel made the move to risk analytics fintech Acin in 2019. As she settled into her new role, she had the opportunity to meet board directors and advisers who had followed similar career paths and were now enjoying the flexibility and variety of portfolio careers as non-executive directors (NEDs). Intrigued by this prospect, Patel soon realized that securing her first board seat would be a challenge, primarily due to her age and Indian heritage. The world of NEDs is often described as a closed circle that relies heavily on personal networks and experience. Recognizing the need for practical exposure, Patel decided to seek out Heather White, a matchmaker who connects executives with boardroom apprenticeships. For a fee, White interviews candidates and facilitates a 12-month stint as an observer on a host board, allowing them to learn from a mentor and navigate the complexities of boardroom dynamics. While it’s difficult to gauge the conversion rate of these apprenticeships into actual NED roles, the demand for such opportunities is undoubtedly increasing.
These apprenticeships offer valuable insights into the responsibilities and inner workings of corporate boards and are an effective way for candidates to enhance their CVs. They also provide businesses with the chance to diversify their leadership pipelines and bring in specialists for short-term assignments. Acting as a trial period, these apprenticeships allow boards to assess candidates before making long-term commitments. However, despite the desire for greater diversity in boardrooms, larger companies, particularly those in the FTSE 100 and 250, are often hesitant to engage temporary observers due to confidentiality concerns and the risk of being accused of “diversity washing.” Smaller companies tend to be more open to the idea, and the government has even initiated its own program.
Patel was matched with Zenitech, a software development and engineering services company, as her host board. Although she doesn’t have legal or voting rights, she can access board papers and contribute to discussions. Patel emphasizes the importance of proactivity in this role, as individuals must take the initiative to learn, network, and build relationships. Interestingly, those who are eager to seize these opportunities may not necessarily be the most capable candidates. A viable alternative to achieving diversity in boardrooms could involve addressing the lack of diversity in executive committees. This approach would strengthen the pool of experienced female and non-white candidates, eliminating the perception that they were appointed solely for diversity quotas. However, there is no guarantee that demographic shifts will occur naturally, as highlighted by Moni Mannings, a non-executive director and founder of Epoc, a network focused on increasing ethnic diversity on boards. Epoc plans to launch its own boardroom apprenticeship program, enlisting high-performing individuals from ethnic minorities within participating companies to serve as observers on other boards for 18 months. This program aims to create a virtuous circle, simultaneously boosting individuals’ executive careers and opening access to board positions.
Nicolina Andall, a lawyer who underwent a board apprenticeship and now serves on various public institution boards, acknowledges the existing barriers, particularly in FTSE organizations. However, she notes that it’s easier to secure board positions in other sectors, such as charities. To overcome this challenge, awareness must be raised about available roles and the potential for individuals to make meaningful contributions. Other avenues for gaining board-level experience include specialized courses and diplomas offered by reputable institutions, such as the Corporate Governance Institute and the Institute of Directors. Additionally, shadow boards or junior boards within companies, like Gucci and Oliver Wyman, provide valuable insight and feedback while incorporating younger or underrepresented voices. These initiatives are like going to the gym – starting small and gradually building confidence and capability.
Despite the growing number of opportunities, there are concerns about the long-term success and impact of these initiatives. Some women have been left unsupported after completing apprenticeships, unable to secure actual board positions. Furthermore, a non-executive director at multiple FTSE companies maintains that proven executive experience is still essential for effective board members. The most successful NEDs typically have a track record as CEOs, CFOs, or senior executives. Even Gordon Wilson, chair of Zenitech, advises caution, stating that boardroom apprenticeships are not a guaranteed path to NED roles.
In conclusion, while boardroom apprenticeships offer a promising avenue for diversifying boardrooms and providing practical experience, their long-term effectiveness and conversion rates remain uncertain. Addressing the lack of diversity in executive committees and raising awareness about available opportunities are essential steps towards achieving more inclusive boardrooms. Ultimately, the goal is to create a level playing field and ensure that individuals from diverse backgrounds understand that the door is open for them to join the boardroom table.
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