We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What does an Independent Director do?

Mary McMahon
By
Updated Mar 02, 2024
Our promise to you
Practical Adult Insights is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At Practical Adult Insights, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

An independent director assists with the development of policy-making and planning for a company. Independent directors do not have personal relationships with the companies they work for and they are believed to be less biased than managerial personnel who come from within a company or are closely linked to a company. Many companies have an independent director on their board in order to benefit from the input of an impartial advisor when making decisions about how to operate the company.

In order to be considered an independent director, someone must not work or be associated with a company. This association extends to relatives and partners. Independent directors receive no compensation other than their fees for participating in board meetings and they are not involved in the daily management and operations of the company. They also cannot be majority shareholders or beneficiaries of people who hold majority shares.

The role of the independent director is to provide an outside perspective. People in this position are sometimes referred to as outside directors in reference to their function on the board. Like other members of the board, an independent director must read financial reports, know the company and the industry well, and avoid working with rivals in the industry to limit conflicts of interest. This member of the board participates in votes and discussions about the future direction of the company, including decisions about compensation and adoption of new company policies.

Independent directors monitor activities at the companies they work for, identifying specific issues and areas of concern the company needs to address. They also represent the interests of the shareholders. While shareholders do get a vote on some issues, they are not involved in decision-making at the level of the board. Having a board member who advocates for and protects shareholders can be important and will help a company fulfill its fiduciary duty to people who own shares and have an interest in the company.

It is also not uncommon to see a company using an independent director as a public relations tool. Companies may ask notable members of the community to serve on the board. High profile people can sit on the boards of a number of companies and organizations, lending weight to the proceedings at board meetings. Having a famous and well-respected person on the management team can improve a company's reputation and increase confidence among investors, as well as members of the general public.

Practical Adult Insights is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Mary McMahon
By Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a Practical Adult Insights researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Discussion Comments

Mary McMahon

Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a...

Learn more
Practical Adult Insights, in your inbox

Our latest articles, guides, and more, delivered daily.

Practical Adult Insights, in your inbox

Our latest articles, guides, and more, delivered daily.