Non-executive director

A non-executive director (abbreviated to non-exec, NED or NXD), independent director or external director is a member of the board of directors of a corporation, such as a company, cooperative or non-government organization, but not a member of the executive management team. They are not employees of the corporation or affiliated with it in any other way and are differentiated from executive directors, who are members of the board who also serve, or previously served, as executive managers of the corporation (most often as corporate officers). However, they do have the same legal duties, responsibilities and potential liabilities as their executive counterparts.[1][2][3]

Non-executive directors provide independent oversight and serve on committees concerned with sensitive issues such as the pay of the executive directors and other senior managers; they are usually paid a fee for their services but are not regarded as employees.[4]

All directors should be capable of seeing corporate and business issues in a broad perspective. Nonetheless, non-executive directors are usually chosen because of their independence and initiative, are of an appropriate caliber and have particular personal qualities.[1]

  1. ^ a b "The role of the non-executive director" (PDF). Institute of Directors. 2010. Archived from the original (PDF) on 4 April 2015. Retrieved 3 November 2015.
  2. ^ Hayes, Keith (2014). Business Journalism: How to Report on Business and Economics. Apress. ISBN 978-1-4302-6349-4.
  3. ^ "Executive Coaching". CoachDirectors. Retrieved 2017-03-02.
  4. ^ Bott, Frank (2014). Professional Issues in Information Technology - Second edition. BCS Learning & Development Limited. ISBN 978-1-78017-180-7.