[1] Their role may change depending on the organisation,[5][6] though they are usually not involved in the day-to-day management of the corporation but monitor the executive activity and contribute to the development strategy.
Having a non-executive director in a business may seem necessary due to the benefits having one can provide; however, it is possible a NED may contribute to a dynamic of deteriorating board relationships.
This in turn can contribute to a dynamic of deteriorating board relationships, characterized by withholding of information and mistrust.
These should inform its shareholders by presenting a true and fair reflection of its actions and financial performance and all of the board should ensure that the necessary internal control systems are put into place and monitored regularly and rigorously.
There are a few factors that determine the level of remuneration of a NED:[20] It is vitally important that all non-executive directors are aware of their duties and liabilities as well as developing the softer skills associated with the role such as board behaviour and effective challenge.
There are a number of organisations who provide this type of training such as NEDonBoard, the Institute of Directors and Financial Times.