More non-executive directors on a company's board hinder its performance, according to a study from the Henley Management Centre.
The study challenges one of the Higgs Report's central measures - that at least half the members on a company board should be non-executives. The report also claimed that the greater the number of active executives on a board, the better its performance.
The study is another blow to the recommendations in the Higgs Report, which has already come under criticism from the business community.
The Higgs Report was commissioned in response to the accounting scandals at Enron and WorldCom. The recommendations were intended to help curb the rise in litigation against directors and officers, and the subsequent rise in insurance claims.
