So-called retirement opened more new doors than expected, as Andy Pearson, former partner at KPMG's office in Birmingham, explains to Andrew Macleod... When Andy Pearson "retired" as a partner in KPMG's Birmingham office it was with the aim of exploring pastures new as an active investor in the region's economy - targeting companies he felt could benefit from his vast experience. Nothing could have been further from his mind than taking on the role of non-executive director. "There are plenty of reasons not to in a litigious age like this," he explains, "particularly when I think of the nonexecs in Equitable Life being sued for their entire worth, for a role that they took on for little reward or financial benefit." Compelling as that argument was as a deterrent, the fates saw things differently, and when Mr Pearson was approached by a West Midland company and asked whether he would consider a non-executive boardroom role, he agreed. The offer he couldn't refuse came from an old business friend whom he liked and trusted, and fancied the idea of working with. "I had joined KPMG in 1978, and for the last 16 years I was a partner in the Birmingham office," says Mr Pearson. "When I retired last September, I formed WayPoint Investors with the intention of doing lots of things, but being a non-executive director was not one of them." What captured his interest in the non-exec challenge was that the firm he was joining was going through a period of change - a time when new skills were needed, as were new ways of looking at issues. "I realised that with my background I had a lot of professional skills that were relevant," he explains. "I thought it would be fun, stimulating - and that it would help keep my name known in the business community." There was an added attraction - the discipline and technical competence required to function properly as a non-exec. "It's really quite structured," says Mr Pearson. "Board meetings are set, and responsibilities are clearly defined, which means I have to force myself to be disciplined at least once a month." Mr Pearson's current NED role could soon be joined by a second. He has been approached by a company that is preparing itself for flotation. "The questions I'm asking are pretty much the same as I asked before," he says. "Are they people I can trust? Am I going to have fun doing it?" It sounds quite cosy, but in reality the modern non-exec can be called upon to play hardball. "A few years ago, a non-executive director was likely to be a trustee. Now they have to be independent. The pendulum has swung the other way, and in the process I think we may have lost sight of the real benefits of having non-execs," says Mr Pearson. "They are not purely there to be governance Rottweiler, keeping the executive directors in line. In my professional career I have found them to be quite straightforward people." Subjected, as they often are, to pressures from all sides, the ideal non-exec is likely to possess a strong character, and an equally strong determination to say his piece. He will also be pragmatic in his evaluation of the executive directors and, where necessary, will bring his own network into play. "One of the most important things is the ability to probe - to challenge and ask questions, not in a dull and destructive way, but in a way that pushes things forward a little, or brings into play something that you have encountered in your professional life but which has not occurred to the executive team," says Mr Pearson. "When you see that working - when you throw a thought into the discussion and a better decision is made as a result of it - that's what gives you a buzz. "It is my firm believe in business life, that wherever the bar happens to be at present it is always your duty to try to raise it, regardless of whether you are already in the top strata. "That's the real value of the non-executive." Although there seems to be a ready supply of good calibre candidates available in the region, Mr Pearson believes there is scope for more to be encouraged to consider non-executive work. "There is a pool of very talented and savvy senior people in the region's professional firms, but unfortunately they are not encouraged to make their knowledge more widely available until they are on the brink of retirement," he adds. | 
