Primary navigation:

QFINANCE Quick Links
QFINANCE Topics
QFINANCE Reference

Home > QFINANCE Dictionary > Definition of nonexecutive director

Definition of

nonexecutive director

Corporate Governance

board member without day-to-day involvement a part-time, nonsalaried member of the board of directors, involved in the planning, strategy, and policy making of an organization but not in its day-to-day operations. The appointment of a nonexecutive director to a board is usually made in order to provide independence and balance to that board, and to ensure that good corporate governance is practiced. A nonexecutive director may be selected for the prestige they bring or for their experience, contacts, or specialist knowledge.

Related definitions of "nonexecutive director"

Recommended Further Reading (Term count)
  • Regulatory Responsibilities of Executive and Nonexecutive Directors: An International Overview
    This checklist provides an overview of the regulatory responsibilities of executive and nonexecutive directors.
  • World-Class Internal Audit
    by Robin Pritchard
    The world in which we live and work today has the most complex, diverse, and challenging demographics ever known to man. Not only have we developed an appetite for travel, trade, and communication across all boundaries, but the technological advancement, awareness of the dimensions of security, and the conflicts arising from political direction and change represent a demanding challenge for everyone. This encompasses both issues that are...
  • The Board’s Role in Executive Compensation
    This checklist considers the various elements that comprise executive pay and benefits. It also looks at how the board can and should ensure that remuneration levels strike the right balance to attract and retain management talent while still representing value for shareholders.
  • Auditing Islamic Financial Institutions
    by Roszaini Haniffa
    The purpose of the statutory or financial statement audit is to enhance the degree of confidence of intended users of the financial statements as to whether the financial statements are prepared in accordance with an applicable financial reporting framework. The most widely accepted and adopted auditing standards are those issued by the International Federation of Accountants (IFAC).Following the emergence and phenomenal growth of Islamic...

Definitions of ’nonexecutive director’ and meaning of ’nonexecutive director’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’nonexecutive director’ and other financial terms with our online QFINANCE Financial Dictionary.

Back to top