What is a Non-Executive Director (NXD)?
Company Chairs and chief executives typically use their non-executive directors to provide general counsel – and a different perspective. They may seek their guidance on particular issues before they are raised at board meetings. Non-executive directors are appointed to bring to the board independence; impartiality; wide experience; specialist knowledge and leadership.
How does a NXD support the business to succeed?
- Corporate Governance – demonstrating effective Corporate Governance adds value in the eye of potential funders and acquirers.
- Strategic Direction – providing a view of external factors affecting the company and its business environment and acting as a constructive critic in looking at the objectives and plans devised by the executive team;
- Monitoring Performance – reviewing progress made towards achieving the determined company strategy and towards Exit;
- Managing Risk – ensuring that the integrity of financial information and that financial controls and systems of risk management are robust and defensible;
- Communication – helping to connect the management team and board with networks of potentially useful people and organisations and often also provide support in representing the company to the external market.