Non-Executive Director
A non-executive director (or outside director) is a member of the board who is not otherwise employed by or engaged with the organisation, and does not represent any of its stakeholders.
Non-executive directors (NEDs) bring outside experience and perspective to the board, by way of own personal skills, business experience and industry contacts. They are often useful in handling disputes between executive directors, or between shareholders and the board. Non-executive directors are thought to be advantageous because they can be objective and present little risk of conflict of interest.
The non-executive director is generally involved in attending board meetings and company functions. Within larger organisations, a non-executive director will sit on the Audit Committee, Pension Trustee Body, Directors Remuneration Committee and any other Committees that require an independent body of thought, separate and not answerable to the Chief Executive, Managing Director or Chairman.
