The Board of Directors in Corporate Management

In corporate management, the board of directors is the top team, which is responsible for the whole company. The board is responsible for determining vision, mission and goals and weighs in on things as strategic planning, mergers and acquisitions capital appropriations, operational budgets and the decisions regarding compensation. The board is responsible for the hiring and dismissal of the CEO as well as determining executive pay rates and bonus payments, as well as profits sharing and employee stock options. The majority of boards are arranged around committees focusing on specific tasks. For instance the audit committee collaborates with a company’s auditors while the compensation committee is responsible for issues such as salary rates and stock option grants.

The board is the primary source of conscience of an organization. They ensure that all work is completed and that criteria are carefully considered prior to being presented to management to be approved by management. Some presidents with a strong sense for discipline use the board to for enforcing quotas or other performance measures and to measure the performances of their subordinate executives.

Directors are not involved in the management decisions at a lower level, but they play a significant role in setting up big policies for a business. They make important decisions that will have a profound impact on the company, for example, closing facilities, for example. They decide on where to invest the company’s cash and establish long-term goals for growth, quality financial, and human resources. The board should also set guidelines regarding its conduct and also address legal issues such as conflicts director independence community benefits, and the evaluation of the CEO.

board of directors in corporate management