Inside director definition
/What is an 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.
Examples of Inside Directors
An example of an inside director is a chief executive officer who also serves on the board of directors. Chief financial officers and chief operating officers may also hold positions on the board of directors. A major shareholder who also sits on the board can be considered an inside director, since this person may have more access to insider information than would normally be the case.