The Pros and Cons of a Non-Executive Director Role
At a basic level, boards can be divided into two sets of roles – executive and non-executive.
Together, they represent the interest of all shareholders, including minority shareholders, as they fulfill the financial regulators’ basic governance and reporting requirements and provide guidance to the CEO and executive team.
Additionally, the board directors also:
- Help manage capital market expectations and investor relations
- Provide leadership during major governance or financing events (e.g., funding/IPO, M&A takeover attempts, liquidity events)
- Help manage and mitigate enterprise-level risk (including Group-level crisis management)
- Drive CEO succession
Shifting the focus to non-executive director roles, what are the pros and cons one must keep in mind as one applies for the said role? Arnaud Despierre and Andy Davies disclose all in their webinar.