Non
Executive Directors and your business
What
is a Non Executive Director?
A
non-executive director (NED, also NXD) or outside
director is a member of the board of directors
of a company who does not form part of the executive
management team. He or she is not an employee
of the company or affiliated with it in any other
way. They are differentiated from inside directors,
who are members of the board who also serve or
previously served as executive managers of the
company (most often as corporate officers).
Non-executive
directors have responsibilities in the following
areas, according to the Higgs Report, commissioned
by the British Government and published in 2003:[1][2]
-
Strategy:
Non-executive directors should constructively
challenge and contribute to the development
of strategy.
-
Performance:
Non-executive directors should scrutinise
the performance of management in meeting agreed
goals and objectives and monitoring, and where
necessary removing, senior management and
in succession planning.
-
Risk:
Non-executive directors should satisfy themselves
that financial information is accurate and
that financial controls and systems of risk
management are robust and defensible.
-
People: Non-executive directors are
responsible for determining appropriate levels
of remuneration of executive directors and
have a prime role in appointing, and where
necessary removing, senior management and
in succession planning.
NEDs should also provide independent views on:
-
Resources
-
Appointments
-
Standards of conduct
Non-executive directors are the custodians of
the governance process. They are not involved
in the day-to-day running of business but monitor
the executive activity and contribute to the development
of strategy.
IMPORTANT PLEASE
NOTE
Andante does not
provide non executive directors however we are
an
alliance partner with the NED Solutions
http://www.nedsolutions.co.uk/
Call us now
with any questions you may have about Non Executive
Directors
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