ITV Chair Candidates Need No X-Factor
Headhunters pride themselves on discretion that looks more like secrecy. So why do nominations committees play out the recruitment process in the glare of publicity? Once, the first the world knew of a top appointment was its announcement to the stockmarket: now the shortlist is likely to be printed in the press and pulled apart by shareholders.
Latest victim of this humiliating public scrutiny is Sir Crispin Davis. The former Reed Elsevier chief executive was named as a candidate for the ITV chairmanship, rubbished by investors for his record at the publishing group and has now withdrawn from the selection process. He has suffered all the downside of a high-profile corporate role without receiving any of the rewards. If anything, his reputation is damaged for next time the headhunters search for a new chairman.
It had already been reported widely that Davis was a contender to chair Sainsbury before it went to David Tyler of GUS, but throughout this year the public has been kept informed on people who fail to get top jobs. The scuttlebutt told us that John Peace was on the supermarket's shortlist before accepting Standard Chartered's chairmanship; Sir Wyn Bischoff was in the running for both Standard and UKFI before landing the Lloyds position; Northern Rock's Ron Sandler and London Stock Exchange chairman Chris Gibson Smith were cited for Lloyds too. Now it is public knowledge that Sir Michael Bishop is being interviewed for ITV.
But if it is embarrassing for the world to think you wanted a top job and didn't get it, it is debasing to be attacked for trying. Davis is not the only victim of putting his head above the parapet for it to be publicly shot off. The press this year reported how the Treasury vetoed the appointment of Standard Life chairman Gerry Grimstone to chair the Bank of England; Anglo American's investors in South Africa broadcast their opposition to Sir John Parker becoming chairman (but relented when Anglo received an unwanted bid); Glen Moreno's temporary chairmanship of UKFI was criticised for his past banking links; Richard Burrows' appointment to BAT's chair was greeted with disparagement because of his time at Bank of Ireland. Even Sir Stuart Rose has rudely reacted to the hopes of his Marks & Spencer deputy, Sir David Michels, in succeeding him as chairman.
The suspicion is that nominations committees are eager to leak shortlists to test shareholders' response, preferring to see a candidate criticized before being appointed than slaughtered afterward. That shows an insecurity by committee members afraid to make decisions. They are well aware that institutions sounded out on names will betray confidentialities if publicity aids their campaign of opposition.
But what incentive is there for executives to put themselves forward for top positions if they are likely to be disparaged like contestants on a television talent show? Being attacked for running a company is one thing, but why volunteer to be assailed before the appointment is made?
(Pic: charlesdyer cc2.0)