outside director

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Financial Dictionary

Outside Director

Any member of a company's board of directors who is not an employee or stakeholder in the company.

Investopedia Commentary

Outside directors are advantageous because they have very little conflict of interest.

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Financial Dictionary

outside director

A member of a firm's board of directors who is not employed in another capacity by that firm. An example is the president of one firm who serves as a director of another firm. Some people believe that at least some outside directors are needed to give a board balance and to protect stockholders' interests. Compare inside director.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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Legal Dictionary

Main Entry: out·side director
Function: noun
: a corporate director who is neither an employee nor an officer

Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
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