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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)
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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.

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