The board of directors in corporate management is the most important group that has the ultimate responsibility for a company. The board determines vision, mission and goals and weighs in on such matters as strategic planning, mergers and acquisitions capital appropriations, operational budgets, and the decisions regarding compensation. The board is also accountable for appointing and firing the CEO as well as setting executive pay rates as well as bonuses, profit sharing and employee stock options. Boards are often organized around committees which focus on specific tasks. The audit committee, for instance, works with the company’s auditors. The compensation committee is accountable for issues like the salary of employees and stock options.
The role of a board is essentially to act as the corporate conscience, making sure that the work is completed and that the criteria are considered before submitting them to management for approval. Some presidents who have a strong sense for discipline use the board as a way in enforcing quotas and other performance indicators, and to gauge the performance of their subordinate executives.
Directors rarely get involved in low-level managing policy decisions, however they do have a major role to play click to investigate in the formulation of big policies for the company. They make important decisions for the company, like closing facilities. They decide on where to invest the company’s cash, and they establish long-term goals for quality, growth financial, and human resources. The board must also establish guidelines for its own behavior and address legal issues like conflicts of interest directors’ independence, conflicts of interest, community benefit, and CEO evaluation.
