A Non-Executive Director (NED) is a member of a company’s board of directors without management responsibilities and does not engage with the daily operations. The role of non-executive directors in business growth is to provide a constructive challenge and independent commentary, based on their unique experience, specialist skill set or industry expertise. The responsibilities of a non-executive director can include strategic guidance, performance monitoring, and governance assurance.
While historically Non-Executive Directors were primarily utilised by larger PLCS, recent years have shown a significant increase in SMES engaging in NED services due to a growing recognition of the value that they can bring to the boardroom. This shift is caused by the need for independent direction, governance and specialised expertise that a NED can provide.
Why Would You Want a Non-Executive Director?
There are many reasons a company might want a NED. Arguably, the most important aspect of a NEDs duties is the independent view that they can offer a company, that is separate from the day-to-day operations. This independent perspective can include helping the business avoid making significant mistakes and providing contacts and connections in areas where the company may lack.
Non-Executive Directors are assigned to challenge the management team’s performance, which is beneficial for the directors when they struggle to agree on goals, decisions, and objectives.
Our Non-Executive Director Service
Our approach to NED support at fds is completely bespoke to meet the unique needs of your business. fds has talented and experienced non-executive directors who are ready to help you reach your goals by offering practical and actionable guidance on everything it takes to be a successful NED. This may include corporate governance, strategic planning, helping to prepare for a business exit, risk management, finance expertise or anything else; fds is readily available and fully equipped to provide the support you need.
The role of the non-executive director is certainly not to run your business. Rather, it is to support and challenge the executive team by using invaluable world and business skills, all the while not necessarily sitting in the executive chair. A great NED brings contacts, a sense of proportion, and clarity to strategic decisions.
Benefits We Can Bring to the Board
Amongst our specific expertise, we can bring a range of benefits to the boards we support, including:
- Ensure accountability of fellow directors
- Share ideas
- Specific expertise
- Ensure strategic goals are adhered to by establishing a process
- Bring processes and procedures to ensure strategic goals are agreed upon and adhered to
- Attendance at company board meetings to provide an expert, third-party view
- Provision of board reporting
- Advice and guidance on good governance practices
- Gain access to a black book of contacts
How Can fds Help?
If you are keen to explore the possibility of having one of our esteemed senior team members join your board as a Non-Executive Director or NED Chair, please contact us to engage in a thoughtful discussion about your specific aspirations and how we can support your strategic goals.
