RBS Non Execs "Bowed to pressure"

There are reports that Non Execs of the tax payers new bank, RBS, backed down from asking questions about the banks financing, when they were threatened with the sack.

If this is true this shows that the wrong people are being chosen to be Non Exec Directors (NED's).

NED's are supposed to be independent. Any board taking on a NED should ensure that they are also financially independent. They then have no worries over being sacked.

A NED's ultimate sanction is to resign highlighting issues to shareholders (Or government if a public sector NED). If they "fear" the sack, they should not be there in the first place, they are critical friends on the board, not co-conspirators.

Until boards recognise this they will be ineffective and not deliver true shareholder value.

LA