Independent Outside Director

See: Board of Directors.

The keyword here is "outside," as so many companies have employees, founders, investors, or other insiders who hold board seats.

When a director comes from the "outside," they're not affiliated with the company in any other way, other than as their board seat dictates. Why does this matter? Well, the company needs honesty in the way it manages itself both internally and externally. Someone from the outside would, in theory at least, be more tangibly and honestly representative of the company.