Inside director

An inside director is a board member who is also an officer or employee of the company. These individuals are valued for their high level of knowledge of company operations. However, they may not make decisions in an objective manner, especially when board decisions could negatively impact their jobs. Consequently, it is best to have a few inside directors on a board, who are offset by a group of outside directors who have no employment ties to the company. An example of an inside director is a chief executive officer who also serves on the board of directors.

Related Courses

CFO Guidebook 
Public Company Accounting and Finance