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 ?
Terence Chiu, Founding Executive Council Member of The Hong Kong Independent Non-Executive Director Association
Non-executive directors play a vital role in overseeing the actions of the executive directors <B
She said that the current level of remuneration is for a non-executive director within a PCT, with an expected time commitment for 2-3 days per month.
The non-executive director should be willing to walk away from the company if they do not believe that their voice is being heard.
Decyk has served as a non-executive director on several Boards and is currently serving as a non-executive director of Snap-on Incorporated and Alliant Techsystems.
Melanie Malsbury, one of PwC's partners in the North-east said: "Non-executive directors recognise that it would be insensitive to push for pay hikes at a time when companies are under huge financial pressure.
The new Non-Executive Director is a banker with more than 25 years of experience in the banking industry, and has a Bachelor of Science degree in Geography from the London School of Economics.
Frew, who is also a non-executive director at Aberdeen Asset Management, will serve as a member of risk oversight and audit committees at Lloyds, the 41 percent government-owned bank said.
A NEW non-executive director of NHS Wirral has been appointed.
Baroness Cohen, a non-executive director of the London Stock Exchange, has been a non-executive director of Freshwater since May 2007.
He joined the Northern Rock board in June 1994, was appointed as a non-executive director two years later and became chairman in April 2004.