Definition: ‘Non-executive director’

A member of a company’s board of directors who is not part of the executive team. A non-executive director (NED) typically does not engage in the day-to-day management of the organisation, but is involved in policy making and planning exercises. In addition, non-executive directors’ responsibilities include the monitoring of the executive directors, and to act in the interest of any stakeholders. Also called external director, independent director and outside director.