outside director

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Related to Non-executive director: board of directors, Independent director, outside directors

Outside director

A director of a company who is not an employee of that company and brings in outside experience to help make board decisions.

Outside Director

A member of a publicly-traded company's board of directors that is not otherwise employed by or engaged with the company. That is, he/she does not represent shareholders or major executives in the company. Outside directors are thought to be advantageous because they offer objectivity and have little or no chance of conflict of interest. However, there is the possibility that an outside director might be unengaged with the issues involved in the company's governance. The Sarbanes-Oxley Act of 2002 mandates that a certain percentage of boards of directors be outside directors. It is illegal for outside directors to sit on multiple boards in the same industry as this may result in conflicts of interest.

outside director

A member of a firm's board of directors who is not employed in another capacity by that firm. An example is the president of one firm who serves as a director of another firm. Some people believe that at least some outside directors are needed to give a board balance and to protect stockholders' interests. Compare inside director.
References in periodicals archive ?
non-executive director is expected to contribute to the success of the organisation between board meetings.
Tim Griffin and Aileen Richards are the first non-executive directors <B appointed to the WRU
Up until now each PCT has had its own board, which includes a number of non-executive directors and a chair.
One of the key roles of a non-executive director is to challenge the board, a task which is difficult for board members who have family ties or are connected socially.
Halliwells said its Non- Executive Protect product will "shield" non-executive directors from legal and regulatory risk - including imprisonment.
Both executive directors and non-executive directors would be subject to the same standards, requirements and penalties.
The TUC analysis, based on latest company reports, shows the most active non-executive director is Lord Seitz, 57, vice-chairman of merchant banker Lehman Brothers.
He is on the pay committee of General Electric Company and Cable & Wireless and is also a non-executive director of Rio Tinto and British Airways.
JOHANNESBURG -- Sappi Limited (NYSE: SPP), the global pulp and paper group, today announced that Mr Valli Moosa will join the Sappi Limited board with effect from 01 August 2010 as a non-executive director, following the conclusion of Sappi's R814m black economic empowerment transaction earlier in 2010.
Perhaps a strong non-executive director would have encouraged the VW team to look beyond the engineering perspective and passing regulatory hoops.
The Company is pleased to announce the appointment of Tim Scholefield as a non-executive Director with effect from 30 September 2015.
The professional advisory firm's research reveals that the base board fees for non-executive director roles in the FTSE-100 are beginning to plateau after several years of rises, as companies try to keep pay increases for executives and non-executives more in line with the rest of their employees.