What are non executive directors?

A non executive directorship is an appointment to the board of a company on a part time basis. The work of a non executive director generally involves attending some board meetings and company functions, with the aim of providing experienced, intelligent advice to the company board, the chairman or management.

Non executive directors can offer advice from the perspective of somebody not absorbed in the day to day details of business – based on the view of an outsider looking in and on the non executive director’s own personal skills, business experience and industry contacts. People who hold these positions are often referred to as NEDs – non executive directors.

In some organisations, their role is to 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.

The details of each position varies, but non executive directorships hold benefits for both individuals and companies. This is widely recognised by both the UK government (which commissioned a report into the role of non executive directors in 2002) and UK business – many of the FTSE 100 companies employ non executive directors. There are also non executive directors in many smaller companies.

You can read more about the benefits of working as a non executive director in this article by the founder of the NEDExchange, Ray Fox. There is also a list of available positions and you can read how we can help you find the right non executive directorship.

If you want to learn how employing a non executive directors can help your company, this article will be of interest to you. There is also a list of available candidates and details of our recruitment services.