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Companies fear being forced to follow statutory employment guidance for directors to avoid falling foul of age discrimination legislation.
All large companies expect to have to change the way directors are hired and fired when the new legislation comes into force in October, according to the results of a new survey.
Company directors are traditionally appointed and dismissed quietly and without the same statutory rules as apply to employees, but 78 per cent of respondents to the survey carried out by employment boutique CM Murray said that director dismissals will now have to be closely documented.
HR directors and in-house lawyers surveyed said they felt that directors will try to use the new legislation to increase exit packages. Such packages also caused concern for 67 per cent of respondents, who said they would raise corporate governance issues.
CM Murray founder Clare Murray said: "Directors are likely to be the biggest beneficiaries of this legislation. They've not really had much discrimination legislation before."
CM Murray surveyed 60 FTSE250 companies about the new laws.