Talk the Talk - Willie O'Reilly (Today FM)

Willie O'Reilly, chief executive of national radio station Today FM and president of the Institute of Directors, talks to David Clerkin.

The Institute of Directors has raised concerns about Irish corporate governance. In what ways are Irish boards of directors falling short?

The Institute has always advocated the highest standards in corporate governance. Recent research has shown that Irish governance standards are quite high. Areas like the independence of directors and the breadth of experience at board level need to be addressed. Historically, the pool of non-executive directors on plc boards has been quite narrow.

Irish plc boards tend to be smaller than their equivalents in Britain. Are they more efficient, or are their members spreading themselves too thinly?

The average board size in Ireland is 9.4 directors, which is well below the British average of between 12 and 13 members. In his report on the Role and Effectiveness of Non-executive directors, Derek Higgs states that boards should not be so large as to become unwieldy. There should be a breadth of skills and experience on the board. At least half the board should be made up of independent non-executive directors.

Please explain the value of non-executive directors to a company. Why should shareholders pay for them?

All companies, large or small, will benefit from the experience that a good non-executive director can bring. Non-executive directors make a valuable contribution in the corporate decision-making process, in determining corporate strategy and in the allocation of resources to support those plans.

Where should a plc look for suitable non-executive directors and how can they address the cynic's view that a non-executive position is a ‘jobs for the boys’ appointment?

‘Jobs for the boys’ days are well and truly numbered. The Boardroom Centre at the Institute is the only independent source of non-executive directors in Ireland. It assists companies in finding and appointing the most suitable candidate.

Please tell us a little about the Institute-sponsored Centre for Corporate Governance at UCD. What does it hope to achieve and what progress is it making?

The Centre is a 50:50 joint venture between the Institute of Directors and UCD. It was set up to assist Institute members and company directors achieve the highest standards in corporate governance. In 2003, 600 directors attended courses at the centre.