Senior independent directors are no longer spare tyres on housing boards

This flexibility is common in the skillset of most SIDs. A typical SID role would include supporting constructive relationships between the board and executive team and helping to address any business stress, issues or opportunities.   

In other sectors, there is a strong stakeholder accountability focus to the role. But in housing, there is a general feeling that the whole board must focus on accountability to tenants and key stakeholders. 

One thing we have noticed more recently is that the SID role is no longer the ‘spare tyre’ – dormant until needed to help fix things if the wheels come off – and more often now has a proactive role on the board.   

A few of the SID network questions and discussion points that have arisen in the past five years include the question: vice-chair or SID? 

Sometimes these roles are combined, perhaps as a transition to a SID or because the vice-chair has the skills and experience to also be the SID. The SID role often replaces a vice-chair in a structure when the vice-chair stands down. Occasionally, both roles co-exist where it’s felt helpful to have a stronger cohort of more senior board members.

Often, the vice-chair may be there for succession planning purposes. This can be a point of difference from the vice-chair role, as the SID often would not have any ambitions to move into the chair role in order to further enhance their ability to act as an ‘honest broker’ in any sensitive situations. 

There really is no right answer, but the conversation about what you want from a vice-chair or SID can help get to the right place for your organisation. In terms of remuneration, they tend to be pegged at the same level. 

It is somewhat common for the SID to also chair a governance or audit committee. However, there have been some real conflicts which have arisen in practice in certain (probably rare) circumstances.  

So, it’s good for the SID who chairs a committee to be alive to possible situations as a committee chair (eg overseeing remuneration decisions/investigations) and how that would impact the SID role. 

“SIDs can bring significant value to governance when they possess strong emotional intelligence”

There are many and varied proactive roles our SID network members have responsibility for and have often created in response to the needs of their own organisation. Any board member can do these, but they can also be the specific responsibilities of the SID.

These include acting as a critical friend to committee chairs during the bedding in of a new governance structure or facilitating a non-executive-only discussion periodically to reflect on how things are working. They can also act as a buddy or mentor to new or less experienced board members.

SIDs can also be tasked with keeping an eye on board meeting effectiveness and a balanced agenda focus, leading the recruitment and appraisal of the chair and attending meetings with major stakeholders, particularly dealing with regulatory matters.

SIDs can bring significant value to governance when they possess strong emotional intelligence. They can maintain objectivity while sensing emerging issues and use their interpersonal skills to ensure that sensitive issues are raised and addressed.  

As the housing sector navigates continuing threats and opportunities, SIDs will remain integral in driving change, enhancing stakeholder relationships and ensuring that boards are proactive in addressing the needs of tenants and communities for years to come. 

Kelsey Walker, director, Savills Affordable Housing Consultancy