The appointment of a non-executive director is a key moment in the life-cycle of a growing business. It’s important you understand what they do, where to find one and how to make the most of having one.
What is a non-executive director?
Think of it this way: an executive director is someone who has two roles in your business – firstly, as a senior manager (an ‘executive’); secondly, as a member of the board (a ‘director’). A non-executive director is someone who only has the second role. A non-executive is thus not involved in day-to-day management and can therefore step back and add value as an outsider, thinking longer-term, and providing the bigger-picture. On the other hand, a non-executive director is different from an adviser. A NED is just as much a member of the board as an executive director and assumes the same legal duties and liabilities.
When will you need a non-executive director?
Growth is all about turning your business into something that is different. Thinking of growth in this way makes it easy to see how a NED might be able to add value, if he or she has experience of the type of business that yours needs to turn into. NEDs can also be valuable in other types of transformation – the family business going through inter-generational change, for example, or a professional service firm seeking to professionalise its own management.
Working with us
Rupert Merson LLP principally provides advisory services to its clients, but occasionally partners in the firm have taken non-executive board appointments. If you think we might be right for your board, give us a call. Alternatively, if you just want to talk about whether the appointment of a non-executive director might be your best next step, we will be able to help you with this too.
