what exactly is the role of a Non Executive Director?

Answer 1

Non executive directors are not involved with the day to day management of the company. That job is performed by the executive directors led by the Chief Executive Director (CEO). CEO decides how the company is actually run.

Example of non-exec director is the Chairman. The chairman and the rest of the non-exec directors provide advice and guidance on how to run the company. However technically they don't have the power to decide how the company should be run.

So why do companies have non-exec directors? The text book rationale is check and balances. Both executive and non-executive directors serve the same people - the shareholders. It is the shareholders who pay or approve the directors salary.

Conflicts arise because the executive directors always have the incentive to make the company look good, so that they can get bigger salaries. The non executive directors are supposed to be an independent team of people, separate from the management who monitor how the company is run. For example the internal audit function, reports directly to the non-exec directors. Therefore if there are problems with the company the non-exec directors are able to know directly. They can then use their contacts with the shareholders to communicate the issues the company is facing.

How they really work in practice though, is anybody's guess.

Answer 2

Non executive directors are supposed to be independent directors of the firm, free from the pressures of executives. They are generally part of Audit committees, Executive compensation committees along with other committees. They should work for the benefit of shareholders.

Answer 3

Oh gosh, you do no longer desire to try this. The board of administrators is meant to supervise administration to be certain that that's utilising the donor's money properly. you could desire to have separate administration commitees to supervise on a daily basis operations, such as you defined, however the administrators could desire to recieve comments from the administration committee. those administrators could desire to be divided up into fundraising, governance, audit/finance and technique committees. the administrators are additionally there to function liasons to the great donor community - your company sponsors, your circles of wealthy human beings. So non-earnings desire great boards - approximately 4-5 to do the heaving lifting and a dozen or greater ensue and supply funds. on the administration committee, the administrative director is in can charge - that's a communicate team, yet i would not advise requiring votes to take strikes.

Answer 4

A Director of the Board but not necessarily employed on a day to day basis by the company.

Answer 5

hes a non executive director

what elses ,

Answer 6

They are on the board, but are not employed on a day to day basis. Basically they just come in for the big important meetings with the fancy biscuits. When the CEO's PA gets the nice crockery out.

Answer 7

Tax fiddle, low wages, BIG Dividend Bonuses

Answer 8

a waste of the companies money