CBI ready to marshal opposition to Higgs

The confederation of British Industry is set to oppose key provisions in the Higgs report on corporate governance as the boardroom backlash against the new proposals gathers steam.

The CBI's director general, Digby Jones, will canvass the views of FTSE 100 chairman after a number claimed they will be undermined by plans to establish senior non-executive directors as conduits for shareholder concerns.

Mr Jones said: "There is a growing concern that the cumulative effect of the Higgs proposals could seriously undermine the role of the company chairman. The CBI will be urgently seeking the views of all FTSE 100 chairmen over the next two weeks to ensure that any proposed reform in this area gets it right."

The CBI said it supports the broad thrust of Higgs but believes plans for senior non-executives to chair appointments committees and act as a first port of call for shareholders could create friction. It could make it difficult for chairmen to hold a board together, the organisation said.

Sir Nigel Rudd, who advises the CBI on boardroom issues as well as being the chairman of Pilkington and Pendragon, was the first high-profile figure to speak out, in The Independent on Saturday.

A slew of other chairman voiced their concern yesterday, with Sir Christopher Bland of BT, Gerry Robinson of Allied Domecq and Francis Mackay of Kingfisher and Compass among those expressing reservations about aspects of Higgs.