non-exec board???

[Darthter 542]

Why is the majority of the board made up of Non-execs???

 

What is the difference between an normal board member & a non-exec member???

[craig 5,199]

The most basic difference is that a non-executive board member is not an employee of the company.

 

An Executive Board member is more often than not an employee of the company - the CEO for instance will be an employee. Some companies will include their COO and/or CFO as board members - they would usually be employees too which would make them executive board members.

 

A non-executive board member would not be an employee and, in fact, often are better to have on your board because they dont have a vested interest (an employee wants their salary.....) so can make decisions without a conflict.

[chilledbear 16]

So a non executive chairman means what? Less powers?

[Super Cooper 0]

So who is calling the shots then?

[craig 5,199]

So a non executive chairman means what? Less powers?

 

No, just that he isnt an employee. His powers arent diminished as non-executive. In fact, often the reverse is true, if you have a tied vote on a show of hands vote in board meetings quite often the Chair will have the deciding vote.

 

SC, the Board call the shots on a day to day basis in terms of strategy and decision-making and the management of the company (CEO, COO, CFO etc) will implement the strategic direction of the Board. Nothing really changes other than a personnel change.

[Gribz 966]

The other way to look at a Non Ex Director is as an adviser to the company.

 

Most of these positions are taking by people who dont need or want a salary as they often have many other invested interests.

 

It is usually voluntarily (if invited) or offered as a role of appreciation for a previous work for that company.

Edited May 30, 2013 by Gribz

[stewarty 2,063]

The role of a non-exec is to hold the executive to account for performance in achieving the agreed strategic direction of the company.

 

The chair is the leader of the board. It's Walter's job now to manage the board process, agendas, meetings, etc. in terms of voting, they often have a casting vote, as mentioned.

 

They also have duties towards shareholders and ensuring their interests are represented. In a football sense that's a tricky balance as the interests of fans carry significant weight; but not always from a shareholding perspective.

[Doc 280]

The other way to look at a Non Ex Director is as an adviser to the company.

 

Most of these positions are taking by people who dont need or want a salary as they often have many other invested interests.

 

It is usually voluntarily (if invited) or offered as a role of appreciation for a previous work for that company.

 

Most non-execs I've come across usually still want a hefty reward for their time. They don't come cheap, especially if they are good at the job. Hopefully ours will be a bit more magnanimous given the situation we're in.

[stewarty 2,063]

Most non-execs I've come across usually still want a hefty reward for their time. They don't come cheap, especially if they are good at the job. Hopefully ours will be a bit more magnanimous given the situation we're in.

 

Before his appointment as chair, I'm fairly sure he was being paid around 40k per year for his non-exec director role.

[calscot 0]

I thought it was 50k. Must be on much more now, with share options on top.