TradeAlmanac
Sign in

Independent director

A board member unconnected with the company, its management and its large holders.

How to read the number

The point of the role is to represent the interests of all holders where those of the controlling party and of everyone else diverge.

When the metric lies

Independence is assessed against formal criteria and confirmed by the board itself; meeting the criteria does not guarantee independence of judgement.

Also known as: independent director

Related terms