This thesis seeks to explore and understand the appointment process of first-time FTSE 100 NEDs. It has been widely acknowledged for over three decades that the appointment process of NEDs is an opaque process involving a homogeneous group of people in an ‘old boys’ network. Corporate governance reforms recommend a formal and transparent appointment process which taps into a wider pool of talent. Companies comply with these recommendations yet there has been scant change in the composition of corporate boards. The pilot study consisted of nine interviews with the main stakeholders in the appointment process of a NED, namely Chairman, Executive Search Firms and NEDs. Analysis of the interview transcripts revealed that reputational capital was the basis on which a first-time NED appointment was made after the Chairman had carried out an extensive vetting process to establish the fit of the individual. The main study, based on 15 first-time FTSE 100 NED interviews, sought to understand reputational capital, its constituent parts and how individuals developed it. Further, it sought to explore how an individual’s fit for a NED was established. The analysis revealed that the reputational capital of an appointed NED was a blend of sufficient levels of human, social and cultural capital which had been communicated to the Chairman and other members of the corporate elite. A first-time NED, in gaining a foothold on a corporate board was also entitled to membership of the corporate elite. As reputational capital drives success of directors in the corporate elite, new individuals needed to fit with the norms and values appropriate for membership and carry no reputational risk for existing members particularly the Chairman. This research offers three main contributions to the literature. Firstly, at a theoretical level it extends the concept of board capital to include cultural capital in addition to human and social capital. Secondly, it proposes a conceptual framework which demonstrates how an individual builds reputational capital over the course of a career to secure fit for a first- time NED, as a position in the corporate elite. The framework clarifies our understanding of reputational capital as a combination of human, social and cultural capital in a unique blend of board capital. This board capital is communicated through reputation building activities to members of the corporate elite. Thirdly, at an empirical level it provides an understanding of the FTSE 100 NED appointment process.

This thesis seeks to explore and understand the appointment process of first-time FTSE 100 NEDs. It has been widely acknowledged for over three decades that the appointment process of NEDs is an opaque process involving a homogeneous group of people in an ‘old boys’ network. Corporate governance reforms recommend a formal and transparent appointment process which taps into a wider pool of talent. Companies comply with these recommendations yet there has been scant change in the composition of corporate boards. The pilot study consisted of nine interviews with the main stakeholders in the appointment process of a NED, namely Chairman, Executive Search Firms and NEDs. Analysis of the interview transcripts revealed that reputational capital was the basis on which a first-time NED appointment was made after the Chairman had carried out an extensive vetting process to establish the fit of the individual. The main study, based on 15 first-time FTSE 100 NED interviews, sought to understand reputational capital, its constituent parts and how individuals developed it. Further, it sought to explore how an individual’s fit for a NED was established. The analysis revealed that the reputational capital of an appointed NED was a blend of sufficient levels of human, social and cultural capital which had been communicated to the Chairman and other members of the corporate elite. A first-time NED, in gaining a foothold on a corporate board was also entitled to membership of the corporate elite. As reputational capital drives success of directors in the corporate elite, new individuals needed to fit with the norms and values appropriate for membership and carry no reputational risk for existing members particularly the Chairman. This research offers three main contributions to the literature. Firstly, at a theoretical level it extends the concept of board capital to include cultural capital in addition to human and social capital. Secondly, it proposes a conceptual framework which demonstrates how an individual builds reputational capital over the course of a career to secure fit for a first- time NED, as a position in the corporate elite. The framework clarifies our understanding of reputational capital as a combination of human, social and cultural capital in a unique blend of board capital. This board capital is communicated through reputation building activities to members of the corporate elite. Thirdly, at an empirical level it provides an understanding of the FTSE 100 NED appointment process.

Este estudo objetivou compreender o papel do conselho de administração e estudar as relações entre o board capital, o desempenho e a estratégia, considerando o ambiente organizacional de empresas. Para isso, foi realizado um estudo de caso longitudinal comparativo a fim de identificar aspectos dinâmicos e relacionais de duas organizações pertencentes ao setor aeronáutico: a brasileira Embraer e a canadense Bombardier. A escolha por estas empresas ponderou as condições econômicas instáveis e regulamentares, as mudanças estratégicas implementadas, a importância que estas companhias representam para as economias de seus países e seu alcance internacional. Os dados e informações sobre a Bombardier foram obtidos pelo estudo de caso apresentado por Courtemanche, Côté e Schiehll (2010) durante os anos de 1997 a 2006. Para a Embraer, a pesquisa realizada neste trabalho compreendeu o período de 1994 a 2006. As análises apresentaram ligações distintas entre o board capital e as estratégias propostas em períodos de crise, estabilidade e crescimento para cada empresa, indicando que não há um padrão de estratégia a ser adotada e uma composição ideal do conselho. Entretanto, o estudo contribuiu para corroborar os resultados propostos por Courtemanche, Côté e Schiehll (2010) de que o conselho fornece recursos para a empresa, incluindo o conhecimento estratégico, de mercado e de especialização técnica adquirida através da sua formação e experiência. O conselho de administração se mostrou uma ferramenta importante capaz de ajudar na adoção de novas estratégias em tempos de crise. / This study aimed to understand the role of the board and to study the relationship between board capital, performance and strategy, while considering its organizational environment. It was conducted a longitudinal comparative case study to identify dynamic and relational aspects of two companies belonging to the airline industry: the Brazilian Embraer and the Canadian Bombardier. The choice for these corporations considered the unstable economic and regulatory conditions, the strategic changes implemented, the importance that these companies pose to the economies of their countries and their international reach. Bombardier’s data and information were obtained from a case study presented by Courtemanche, Côté e Schiehll (2010) during the years 1997 to 2006. For Embraer, the research conducted in this study included the period from 1994 to 2006. Analysis showed distinct connections between board capital and the proposed strategies in times of crisis, stability and growth for each company, indicating that there isn’t a regular strategy to be adopted and an ideal composition of the board. However, the study helped to support the results suggested by Courtemanche, Côté e Schiehll (2010) that the board provides resources for the company, including strategic insight, market and technical expertise gained through their training and experience. The board proved to be an important instrument that can help in implementing new strategies in times of crisis.

Este estudo objetivou compreender o papel do conselho de administração e estudar as relações entre o board capital, o desempenho e a estratégia, considerando o ambiente organizacional de empresas. Para isso, foi realizado um estudo de caso longitudinal comparativo a fim de identificar aspectos dinâmicos e relacionais de duas organizações pertencentes ao setor aeronáutico: a brasileira Embraer e a canadense Bombardier. A escolha por estas empresas ponderou as condições econômicas instáveis e regulamentares, as mudanças estratégicas implementadas, a importância que estas companhias representam para as economias de seus países e seu alcance internacional. Os dados e informações sobre a Bombardier foram obtidos pelo estudo de caso apresentado por Courtemanche, Côté e Schiehll (2010) durante os anos de 1997 a 2006. Para a Embraer, a pesquisa realizada neste trabalho compreendeu o período de 1994 a 2006. As análises apresentaram ligações distintas entre o board capital e as estratégias propostas em períodos de crise, estabilidade e crescimento para cada empresa, indicando que não há um padrão de estratégia a ser adotada e uma composição ideal do conselho. Entretanto, o estudo contribuiu para corroborar os resultados propostos por Courtemanche, Côté e Schiehll (2010) de que o conselho fornece recursos para a empresa, incluindo o conhecimento estratégico, de mercado e de especialização técnica adquirida através da sua formação e experiência. O conselho de administração se mostrou uma ferramenta importante capaz de ajudar na adoção de novas estratégias em tempos de crise. / This study aimed to understand the role of the board and to study the relationship between board capital, performance and strategy, while considering its organizational environment. It was conducted a longitudinal comparative case study to identify dynamic and relational aspects of two companies belonging to the airline industry: the Brazilian Embraer and the Canadian Bombardier. The choice for these corporations considered the unstable economic and regulatory conditions, the strategic changes implemented, the importance that these companies pose to the economies of their countries and their international reach. Bombardier’s data and information were obtained from a case study presented by Courtemanche, Côté e Schiehll (2010) during the years 1997 to 2006. For Embraer, the research conducted in this study included the period from 1994 to 2006. Analysis showed distinct connections between board capital and the proposed strategies in times of crisis, stability and growth for each company, indicating that there isn’t a regular strategy to be adopted and an ideal composition of the board. However, the study helped to support the results suggested by Courtemanche, Côté e Schiehll (2010) that the board provides resources for the company, including strategic insight, market and technical expertise gained through their training and experience. The board proved to be an important instrument that can help in implementing new strategies in times of crisis.

Este estudo objetivou compreender o papel do conselho de administração e estudar as relações entre o board capital, o desempenho e a estratégia, considerando o ambiente organizacional de empresas. Para isso, foi realizado um estudo de caso longitudinal comparativo a fim de identificar aspectos dinâmicos e relacionais de duas organizações pertencentes ao setor aeronáutico: a brasileira Embraer e a canadense Bombardier. A escolha por estas empresas ponderou as condições econômicas instáveis e regulamentares, as mudanças estratégicas implementadas, a importância que estas companhias representam para as economias de seus países e seu alcance internacional. Os dados e informações sobre a Bombardier foram obtidos pelo estudo de caso apresentado por Courtemanche, Côté e Schiehll (2010) durante os anos de 1997 a 2006. Para a Embraer, a pesquisa realizada neste trabalho compreendeu o período de 1994 a 2006. As análises apresentaram ligações distintas entre o board capital e as estratégias propostas em períodos de crise, estabilidade e crescimento para cada empresa, indicando que não há um padrão de estratégia a ser adotada e uma composição ideal do conselho. Entretanto, o estudo contribuiu para corroborar os resultados propostos por Courtemanche, Côté e Schiehll (2010) de que o conselho fornece recursos para a empresa, incluindo o conhecimento estratégico, de mercado e de especialização técnica adquirida através da sua formação e experiência. O conselho de administração se mostrou uma ferramenta importante capaz de ajudar na adoção de novas estratégias em tempos de crise. / This study aimed to understand the role of the board and to study the relationship between board capital, performance and strategy, while considering its organizational environment. It was conducted a longitudinal comparative case study to identify dynamic and relational aspects of two companies belonging to the airline industry: the Brazilian Embraer and the Canadian Bombardier. The choice for these corporations considered the unstable economic and regulatory conditions, the strategic changes implemented, the importance that these companies pose to the economies of their countries and their international reach. Bombardier’s data and information were obtained from a case study presented by Courtemanche, Côté e Schiehll (2010) during the years 1997 to 2006. For Embraer, the research conducted in this study included the period from 1994 to 2006. Analysis showed distinct connections between board capital and the proposed strategies in times of crisis, stability and growth for each company, indicating that there isn’t a regular strategy to be adopted and an ideal composition of the board. However, the study helped to support the results suggested by Courtemanche, Côté e Schiehll (2010) that the board provides resources for the company, including strategic insight, market and technical expertise gained through their training and experience. The board proved to be an important instrument that can help in implementing new strategies in times of crisis.