Non-executive Directors -v- Executive Directors

Non-executive Directors -v- Executive Directors

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Discussion

Sterillium

Original Poster:

22,226 posts

224 months

Saturday 12th June 2021
quotequote all

Just wondering if anyone with real-world experience in these roles could reflect on the real-world differences between them.

Very general and likely very subjective, I know, but I'd be interested in the thoughts and experiences of others.

67Dino

3,581 posts

104 months

Saturday 12th June 2021
quotequote all
I think the main difference in my experience is the Director is immersed in the company, and are usually from the industry. NEDs instead are often selected because they bring expertise that is missing on the Board, such as technology, a related industry, a different geographical perspective. Plus they spend their time in different companies.

The role is similar in that it is about bringing challenge and strategic insight to complement the more day-to-day executive roles of the CEO and leadership team. What’s different really is the contribution they make. Certainly speaking as an NED, I know my comments are often of the “what I’ve seen over here [in this different industry/situation] is that they do this” variety.

Mr Overheads

2,436 posts

175 months

Sunday 13th June 2021
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The thing that ISN'T different is that there is no difference in law. If a person is registered at Companies House as a Director then they are all equally culpable/liable etc for the actions of the company, so NED's take a big risk that the day to day operations they don't see don't leave them exposed.