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This board member isn't a company employee, which means they don't engage in the day-to-day management of the organization. Rather, most non-executive directors act as independent advisors and are involved in policymaking and planning exercises.
Nonprofit: Nonprofit board members usually serve as volunteers. They often don't get salaries but may receive reimbursements for attending meetings. On the other hand, for-profit organizations compensate board members through retainers or other financial benefits.
In general, directors who have a service agreement, or employment contract, will be classed as employees. But Non-Executive Directors or NEDs ? who often act in more of an advisory or mentorship role ? may not intend to have any employment relationship with the company.
The quick answer is no, board of directors are not considered employees. There are a few reasons for this: First and foremost, board of directors are typically not compensated for their work on the board. They may receive a small stipend or per diem, but they are not typically given a salary.
?NON-EMPLOYEE DIRECTOR? means a member of the Board who is not an employee of the Company or any of its Subsidiaries. ?OPTION? means an option to purchase Shares awarded to a Non-Employee Director under the Plan.