Non-Executive Director Roles FAQ

Stepping up from a Senior Executive position into the role of a Board Director brings with it much responsibility, commitment and risk. For many executives, becoming a Board member is often the next, logical move in the course of their careers, particularly if they love business governance. Beyond this first decisive step, there is work to be done to strong foundations now for successful appointments later. Planning and understanding roles is mandatory before even the most experienced executive can even begin to apply for their first Board role.

What is the difference between a non executive director and an executive director?

An executive director is a member of the board of a firm (or a non-profit organisation) who also has management responsibilities. A non-executive director (NED) is a board member without responsibilities for daily management or operations of the company or organisation.

Does a non executive director get paid?

Non-executive directors can offer their services gratis, paid or for skin in the company game – shares or future profit %.

Is a non executive director an employee?

No, a Non Executive Director is not an employee of the organisation for which they act.

Can non executive directors be shareholders?

Short answer is yes.  The long answer is the legal duties, responsibilities and liabilities of executive and nonexecutive directors are the same