The board of directors in corporate management is the only team that is responsible for all decisions for a firm. The board is responsible for determining goals, vision, and mission and weighs in on such matters as strategic planning, mergers and acquisitions as well as capital appropriations, operating budgets and pay decisions. The board is responsible for the selection and firing of the CEO and setting executive pay rates, bonus payments, profit sharing, and employee stock options. Boards are typically organized around committees with specific duties. For instance the audit committee works with a company’s auditors while the compensation committee oversees issues like the rate of pay and stock option grants.
Boards are essentially the conscience of an organization. They ensure that all tasks are completed and that the criteria are carefully analyzed prior to being presented to management to be approved by management. Some presidents with a strong sense for discipline use the board as a means to enforce quotas, other performance indicators, and to measure the click to find out more performances of their subordinate executives.
Directors are not involved in the management decisions at a lower level, but they play an important role in the creation of big policies for a business. They make decisions that have a huge impact on the company, like whether to shut down facilities, for instance. They decide on where to invest the company’s money, and they establish long-term goals for quality, growth as well as finances and people. The board must also establish guidelines for its own conduct and address legal matters like conflicts of interest director independence the community benefit, and CEO evaluation.