The board of directors in corporate management is the final team that takes on the responsibility for a business. The board determines the vision goals, mission, and values, and also weighs in with strategic planning, mergers and purchases, capital budgets, operating budgets, compensation decisions, and other issues. The board is also accountable for appointing and dismissing the CEO and setting executive pay rates, profit sharing, bonuses and employee stock options. Most boards are organized around committees that focus on specific functions. For example the audit committee works with the company’s auditors, while the compensation committee is responsible for issues such as salary rates and stock option grants.
The job of a board is essentially to act as the corporate conscience, ensuring that homework is completed and criteria are thoughtfully considered before submitting them to management for approval. Some presidents who have an innate sense of discipline use the board to enforce quotas and other performance measures for their executives who are subordinate to them, and they measure the performances of their directors by comparing them to the pre-defined guidelines.
Directors rarely get involved in low-level managing policy decision-making, but they play a crucial role in establishing major policies for the company. They make crucial decisions for the company, including closing facilities. They decide on where to put the company’s money, and they establish long-term goals for http://www.netboardroom.com growth, quality financial, and human resources. The board should also set guidelines to conduct its business and address legal issues like conflicts director independence community benefits, and CEO evaluation.