In addition to executive directors, a board should also include a number of non-executive directors (NEDs). A NED’s role is to review, constructively challenge and advise both the CEO and the Chair on any matter relevant to ensuring the corporation’s continuity, wellbeing, integrity, ethical conduct, law abidance, reputation, risk management, and resilience. Ideally, most NEDs should be INEDs – totally independent outsiders having no potential conflicts of interest.

Typically, a board will comprise 75-80% executive directors and 20-25% NEDs/INEDs. In Southern’s case, the main board comprises the Chair, the CEO, the Chief Finance Officer and Company Secretary/General Council……. plus SEVEN NEDs (an extraordinarily high proportion). Could this reflect mistrust in executive directors’ management, or perhaps it’s just window dressing to mislead outsiders? 

Four of the seven NEDS are INEDS, while two of the three ordinary NEDs are representatives of Southern’s controlling owner, the Australian private equity company Macquarie. Perhaps the customer bills rip-off is all down to Macquarie sweating Southern for profits. The driving force for the Southern Water hyper-inflated bills and ongoing crisis has to be credibly explained.