In corporate management the board of directors is the ultimate team which accepts responsibility for an entire firm. The board is the one who decides on vision goals, mission, and values and is also involved with strategic planning, mergers and acquisitions capital budgets, operating budgets, compensation, and other matters. The board is also responsible for hiring and firing the CEO and setting executive pay rates including profit sharing, bonuses, and employee stock options. The majority of boards are arranged around committees focusing on specific tasks. For instance the audit committee works with the company’s auditors, while the compensation committee oversees issues like the rate of pay and stock option grants.

The boards are the main conscience of an organization. They ensure that all homework is completed and that the criteria are carefully analyzed prior to being presented to management to be approved by management. Some presidents article with a strong sense of discipline utilize the board to enforce the quotas as well as other performance measures for their subordinate executives, and they evaluate the performance of their own directors by comparing their performance against defined guidelines.

Directors rarely get involved in management policy decisions at a low level. decisions, however they do play a crucial role in establishing major policies for the company. They make decisions that have a huge impact on the business like whether to shut down factories, for instance. They decide on how to invest the money of the company and set goals for the future in terms of quality growth, financial stability and personnel. The board should also set guidelines for its conduct and address legal issues like conflicts director independence as well as community benefits and the evaluation of the CEO.