outside director

Outside Director

Any member of a company's board of directors who is not an employee or stakeholder in the company.

Notes:

Outside directors are advantageous because they have very little conflict of interest.

See also: Board of Directors, Inside Director

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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.

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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.