Nuovo appuntamento con “Peter’s Pills“, la rubrica online di Legal English by Federnotizie (la rivista online di Federnotai), in collaborazione con Confprofessioni e Beprof. La 50esima video-lezione “Executive and Non Executive Directors” è disponibile sul sito www.federnotizie.it, sui canali social e sul sito di Confprofessioni e sulla app Beprof, scaricabile da App Store e Google Play.
LESSON N. 50: CLICCA QUI PER IL VIDEO
Transcript:
Hello!
In Common Law countries, a company’s board of directors is typically made up of both executive and non-executive directors. While both types of directors have important roles to play in the company’s governance, there are some key differences between the two.
Executive Directors:
- Are full-time employees of the company and are involved in the day-to-day operations of the business;
- Have specific responsibilities for managing the company and are accountable to (e rispondono a) the board of directors;
- Are paid a salary and may also receive performance-based incentives (incentivi basati sui risultati) such as bonuses or stock options for the work they do in the company;
- May hold a significant number of shares in the company and have a vested interest (interesse acquisito) in its success;
- Have a more intimate knowledge of the company’s operations and are therefore more involved in strategic decision-making.
Non-Executive Directors:
- Are part-time and are not involved in the day-to-day operations of the business;
- Do not hold an executive position within the company;
- May be appointed (nominati) for their specific expertise or to provide independent oversight (supervisione indipendente) of the company’s operations;
- Are not paid a salary, but are instead compensated with a fee for their services;
- Are generally not shareholders in the company and therefore have less of a vested interest in its success;
- Provide an external perspective to the board of directors and bring a wider range (più ampia gamma) of experience and expertise.
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Read more about the roles and responsibilities of Non-Executive directors in a Common Law country here: “Roles and Responsibilities of Non-Executive Directors of Boards of Companies“.