The Benefits for Companies of Employing Non-Executive Directors

Non Executive Directorships or NEDS can be extremely useful to any company.  In many companies it can be relatively simple for the management structure to slip into an introverted and staid approach to business. It is fairly common for traditional family owned businesses to fall into the trap of “we‘ve always done it this way”.

A Non-Executive Director however can often see risks and opportunities in the marketplace that are sometimes overlooked by the Executive Management.  This is because they are not wrapped up in the day-to-day running of the business.  A Non-Executive Director can therefore step back from the stress of everyday business life and see things from a different perspective.  They can also provide a vital strategic overview. 

The role of a Non-Executive Director or NEDS can be particularly important when the Chairman, Chief Executive Officer or any Owner/Manager of a company is especially entrepreneurial or overbearing.  Non-Executive Directors can also have an influence to moderate a Managing Director who is doing the business for his own ego or financial benefit and not those of the shareholders, even where these may simply be family members.  In many other companies there could be the opposite problem in that the Non-Executive Director is brought in because the organisation lacks the entrepreneurial flare, the breadth of connections or drive to be able to compete in the modern marketplace.

Some companies require Non-Executive Directorships or NEDS to see them through a corporate transition such as a change in ownership, a new product launch, a new pricing strategy or simply a refreshed view.  The Non-Executive Director may bring highly specialised knowledge invaluable to the company going through such events and bring new and exciting skills to the company.   

At it’s simplest level, a Non-Executive Directorship or NEDS might just be brought in to fill a temporary shortage of qualified senior executives or for the more specific purpose of driving a particular business initiative. 

What are Non-Executive Directors?

A Non-Executive Director or NEDS has an appointment to the Board of a company on a part-time basis.  The work of a Non-Executive Director generally involves attending some Board Meetings and company functions with the aim of providing experienced intelligent advice to the Company Board, Senior Executives or general management team.  Non-Executive Directors can offer advice from the perspective of somebody not absorbed in the day-to-day details of the business and take a fresh view of an outsider looking in.  Using the Non-Executive Director’s own personal skills, business experience and industry contacts these positions bring extremely high additional value to the company without major commitment in additional resource. 

Many of the FTSE100 companies employ Non-Executive Directors as do many organisations within the public sector.  Put in a more simple way, a Non-Executive Director could be considered as a “permanent” consultant to the company.

Midas Solutions offer Non Executive Directorships, commonly referred to as NEDS or INDEPENDANT DIRECTOR's to a wide range of small and medium sized businesses.  For further information please call 01253 895927 or complete our contact form for more information on  Non Executive Directorships or NEDS.