Difference between director and executive director?


What is the difference between an executive director and a non executive director of the company? What is the criteria for designating the director as the executive director?

Answers (1)


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An executive director is a member of the board of directors and an employee of the company. He/she will have a specific role such as finance director and as such be responsible for the day to day running of the company within his sphere.

A non-executive director is a member of the board who is not an employee but appointed for his/her expertise and takes a part in decision making at board meetings.

Sometimes non executive directors may get involved in such things as disciplinary hearings, especially for high ranking employees.


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