The head of the Institute of Directors, one of the UK’s biggest business lobby groups, has resigned after less than two years in the role and with less than two months to go until the planned Brexit date.
Stephen Martin stepped down on Wednesday with immediate effect, after joining the organisation in February 2017 on a three-year contract.
In a statement issued by the IoD, Martin said: “After a period of consideration, I feel that this is the right time for me to move on. Given the timescales involved, it makes sense to allow my successor an opportunity to take responsibility for implementing the IoD’s vision for the future of the organisation.”
The lobby group has been rocked in the past year by the departure of Barbara Judge, the former chair of the board who was accused of racist and sexist comments in an internal investigation.
Judge denied the allegations, but resigned in March 2018 after the IoD board suspended her. It is understood Martin covertly recorded some of the remarks made by Judge.
The group, which promotes itself as a voice in favour of strong corporate governance, appointed the former investment banker Charlotte Valeur as a new chair after Judge left.
The scandal surrounding the departure of Judge and multiple allies from the IoD’s board came amid financial struggles for the business group, with membership falling. Valeur this month told the Financial Times that Martin would be held accountable for further membership falls.
“Stephen leaves with our best wishes and thanks for the work he has done in his time as director general, throughout which he has displayed great commitment to the organisation and a passion for speaking up for our members,” Valeur said on Wednesday.
“He has been at the helm during a pivotal period for the organisation and indeed the country, but we accept his decision to allow new leadership to drive forward the changes the organisation wants to make.”
The IoD’s board will start a search for a new leader immediately. It has appointed Anna Daroy, previously chief operating officer, as interim joint director general, while the previous director of policy Edwin Morgan will serve as director general for external affairs.
Daroy has held senior roles at EY, IBM and Mercer, as well as senior UK public sector roles at Highways England and the Office of Fair Trading. Morgan, previously a civil servant, has been part of the IoD since 2010.
Martin’s departure means the organisation, which received a Royal Charter in 1906, will be under completely new leadership as the UK approaches Brexit on 29 March. The IoD remained officially neutral during the EU referendum campaign, but Martin has since issued stark warnings that leaving the bloc without a deal would be damaging to its members.
A former quantity surveyor, Martin held various jobs in the construction industry, including roles at Network Rail and Clugston Construction, where he took part in Channel 4’s Undercover Boss programme.
He carried out a major restructuring of the IoD’s operations, changing how the organisation’s regional operations function and adjusting its model to become more of a network for its members.
