An NED is a member of a company’s board of directors, who is not a part of the full-time staff, or an executive member involved in the day-to-day management of the business. However, they may be involved in policymaking, the businesses’ growth plans and can offer an independent oversight of the aims and goals of the firm.
They are typically brought into a business by the owners and the company shareholders to constructively challenge the decisions made by executive directors and senior management – and often have specialist knowledge in the sector and stage of growth the company is currently in.
On the benefits of bringing in a NED, Gary Ashworth, Founder and Executive Chairman of InterQuest Group comments: “It’s no secret that humans need other people to help them be the best they can be. Tennis players have coaches, racing drivers have a whole entourage of professionals fawning over them, Peloton owners take delight in people shouting at them. It all starts with the humble understanding that we entrepreneurs need help. Smart businesses have Non-Executive Directors.”
To read the full article, which includes further comment from Gary, visit Business Leader.