An Independent Director (also sometimes known as a outside director or non-executive director) is a director (member) of a board of directors who does not have a material or pecuniary relationship with company or related persons, except sitting fees. Independent Directors do not own shares in the company. (Some sources state non-executive directors are different from independent ones in that non-executive director are allowed to hold shares in the firm while independent directors are not. In the US, independent outsiders make up 66% of all boards and 72% of S&P 500 company boards, according to The Wall Street Journal.
Read more about Independent Director: Effectiveness
Famous quotes containing the words independent and/or director:
“When the object is perceived as particular and unique and not merely the member of a family, when it appears independent of any general notion and detached from the sanity of a cause, isolated and inexplicable in the light of ignorance, then and only then may it be a source of enchantment.”
—Samuel Beckett (1906–1989)
“He wrote me sad Mother’s Day stories. He’d always kill me in the stories and tell me how bad he felt about it. It was enough to bring a tear to a mother’s eye.”
—Connie Zastoupil, U.S. mother of Quentin Tarantino, director of film Pulp Fiction. Rolling Stone, p. 76 (December 29, 1994)