Once the board has identified a need to appoint a new executive director, the next step in the recruitment process involves developing a position description for the role.
Executive directors have a dual role: that of company employee, usually a senior executive, and that of board member. Although they have the same duties and responsibilities as other directors, executive directors can add value to the board through their increased knowledge of the company’s business and operations – including strategy, direction and competitive pressures – and having greater access to company information than non-executive directors. Since non-executive directors are more distant from the daily operation of an organisation, inclusion of executive directors on the board can bring valuable insights about the organisation to the table during board discussions.
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