Should the nomination committee consist solely of non-executive directors?

The assertion that the nomination committee should not consist solely of non-executive directors highlights the importance of including a diverse range of perspectives and experiences in the committee's work. While non-executive directors play a crucial role in providing oversight and independent judgment, having executive directors in the committee can bring valuable insights into the needs and strategic direction of the organization.

The involvement of executive directors ensures that the committee has a comprehensive understanding of the organization's operational realities, culture, and long-term strategy when making nominations. This blend can contribute to a more balanced and effective nomination process, wherein the selection of candidates for senior management or board positions considers both strategic oversight and practical realities.

In many governance frameworks, the inclusion of both non-executive and executive directors is seen as conducive to good governance practice. It allows for a fuller evaluation of potential candidates, ensuring the committee can assess their fit concerning the organization's needs effectively while adhering to principles of accountability and transparency. Thus, a mixed composition of the nomination committee is often favored to achieve optimal decision-making.