IoD launched after Lady Barbara Judge quits

The Institute of Directors has had to investigate allegations about how the lobby group is run.

The investigation comes after Lady Barbara Judge resigned from a row over sexism and bullying.

A former member of staff raised questions about how senior officials were recruited and contracts for services were awarded. They include suggestions that some of the positions were not advertised, including the chief operating officer post filled by Esther Teeken. She had worked with director general Jonathan Geldart at accountants Grant Thornton. After working with an interim chairman of the IoD at Edinburgh Airport, the commercial director Richard Townsend was said to have been appointed.

The IoD would be expected to uphold the highest standards. It has a Royal Charter that requires it to promote free enterprise, lobby government and set corporate governance standards.

The whistleblower questioned the award of a contract to Equiom, an Isle of Man firm, to run financial processes for the IoD. Teeken, thought to be paid around 180,000, had been employed there before she joined the IoD in 2019. She is working her notice to take a new job in a move that is not related to the allegations.

The IoD said these allegations were not merited and were subject to a thorough investigation. All senior appointments and major contracts are approved by the board. The IoD is open to scrutiny and has a transparent process for handling complaints. Geldart arrived in 2019 with a 250,000 salary. The judge, who was chair of the IoD for three years until 2018, died in 2020, but always denied allegations about her.

The membership of the IoD has fallen from 35,000 to 20,000 a decade ago. The numbers were stabilising last week, according to its annual report last week.