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Management & Leadership vocabulary · Corporate Governance

Non-executive director

Meaning in management & leadership, with examples

nounAdvanced term

In management & leadership, non-executive director means: A board member who is not part of the management team and does not work in the business day to day, but advises and monitors the executives.

In Turkish: icrada görevli olmayan yönetim kurulu üyesi, icracı olmayan yönetim kurulu üyesi

How it is used

A mainly British term, often shortened to NED; American companies more often say outside director or independent director. Non-executive directors usually sit on board committees such as the audit committee.

Example sentences

  1. She left her full-time job and now works as a non-executive director for two companies.

  2. The non-executive directors questioned the cost of the acquisition.

Common collocations

  • appoint a non-executive director
  • independent non-executive director
  • non-executive chair
  • serve as a non-executive director
  • board of directorsThe group of people elected by a company's shareholders to oversee its management, approve major decisions and appoint or replace the chief executive.
  • corporate governanceThe system of rules, practices and controls by which a company is directed and supervised, especially the relationship between the board, the managers and the shareholders.
  • fiduciary dutyA legal duty to act in the best interests of another person or organisation, such as the duty of company directors to act honestly and carefully for the company.
  • conflict of interestA situation in which a person's private interests, such as money, family or another job, could affect, or seem to affect, the decisions they make for their organisation.

More terms: Corporate Governance

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