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?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.
Hear this out loud PauseThis 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.
Hear this out loud PauseIn 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.
Hear this out loud PauseAn employee director is a member of the team who is nominated, by the employees, to sit on the company board of directors to act as a focal point for the employees.
Hear this out loud PauseBoard directors are not ?employees? and instead have a unique legal status with respect to corporations. Board directors are typically compensated for their service through stipend, equity, or both.