The Board of Directors in Corporate Management
The board of directors in corporate management is the only team that accepts overall responsibility for the company. The board decides on vision, mission and goals and weighs in on such issues as strategic planning mergers and acquisitions capital appropriations, operational budgets, and the decisions regarding compensation. The board is accountable for the hiring and firing of the CEO and also for determining executive pay rates bonuses, pay-outs, employee stock options. The majority of boards are arranged around committees focusing on specific tasks. For example the audit committee collaborates with the company’s auditors. Meanwhile, the compensation committee is responsible for matters like the rate of pay and stock option grants.
The boards are the main conscience of an organisation. They ensure that all tasks are completed and that the criteria are carefully considered before being presented to management for approval. Some presidents with a keen sense of discipline utilize the board to enforce certain quotas or other performance measures for their executives who are subordinate to them, and to assess the performance of their directors by comparing them to the pre-defined standards.
Directors are not part of the low-level management decisions but they play a major role in the creation of big policies for the company. They make important decisions that will have a profound impact on the company like whether to article shut down facilities, for example. They decide on where to invest the company’s funds and they set long-term goals for growth, quality as well as finances and people. The board should also establish guidelines for its own behavior and address legal issues such as conflicts of interest directors’ independence, conflicts of interest as well as community benefit and CEO evaluation.