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. Non-executive directors provide independent oversight and serve on committees concerned with sensitive issues such as the pay of ...