Launch of pioneering non executive directorship scheme

A joint market initiative by CEO/QCA/Unilever

Financial Times Article dated August 4 2006 

  by David Blackwell,  Small Talk

'Unilever helps QCA in the search for experience'

The laws of supply and demand seem to fall into abeyance when it comes to finding non-executive directors for small companies.

The problem of finding non-execs has been exacerbated by the fall-out from Enron and Sarbanes-Oxley regulations as the burden of responsibility becomes more onerous.

But there are tens of thousands of top-quality candidates looking for something to do in the wake of early retirement or redundancy, according to John Webster of The Chief Executives' Office.  "Some are desperate.  I meet multi-millionaire former chairmen in tears because they think the phone will never ring."

Mr Webster's main business revolves around advising and coaching such businessmen on how to approach their impending departure from the big time.  One of his clients is Unilever, which has agreed to co-operate in a scheme run together with the Quoted Companies Alliance to find suitable openings in the small company sector.

So far, two former Unilever bosses have been snapped up - one by Phytopharm, the £24m biotechnology company on the main market and another by CI Traders, the Aim-listed Channel Islands conglomerate.

There are another 19 curriculum vitae from executives who have risen to the top at Unilever, on the QCA website.  Here is a brief summary of one 56-year old: divisional chairman with 20 years of board, general management and global supply chain experience in fast-moving consumer goods, working around the world with brands such as Persil.

The scheme is described as "ground breaking" by the QCA.  "The business acumen and experience normally reserved for the very large companies is now available to the FTSE Small Cap and Aim.  The presence on the board of such people will add value to the company in the eyes of the management and shareholders."

CI Traders, for example, has recruited David Schwarz, who took early retirement from his post as operations director UK Foods at Unilever to be part-time chairman of MMD, its stevedoring and fruit-handling operation in Portsmouth.  He will be supervising the expansion of MMD's facilities for handling goods in transit to the Channel Islands.

"He could have been tailor-made for us," says Mark Bralsford, Chief Executive  of CI Traders.  "Unilever feels its done something constructive on early retirement and we get access to expertise and know-how."

Richard Dixey, Chief Executive of Phytopharm, is equally delighted with the recruitment as a non-executive director of Sandy Morrison, the former head of Lipton, Unilever's global tea subsidiary.  Phytopharm already has strong links with Unilever, its partner in developing Hoodia, a plant-based weight loss product.

Both Mr Bralsford and Mr Dixey also praised the value-for-money element of the QCA recruiting model - a fee of £5000 is paid only after a successful appointment.  A Head-hunter would be more likely to charge about £30,000.

Other FTSE 100 companies should follow Unilever.  Too often matching an executive's skills with a small company is a matter of chance.  More widespread adoption of the QCA scheme would shorten the odds.

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