What Does a Board Director Do?

Share

Share on facebook
Share on linkedin
Share on whatsapp
Share on pinterest

A board director is a person who is responsible for the management of a non-profit or a business. They are legal representatives of owners (shareholders/stockholders) and are legally responsible for high-level decisions. They also decide on policies and dividends, whether dividends are paid and what the upper management receives in compensation.

A good board member is competent in their specializations and is able to rapidly learn about new industries, but more than that they must be able to understand and apply abstract concepts, like strategy and innovation. They should be able to pose tough questions and confront the status quo and build trust within the team. In the past, boards were focused primarily on management oversight but now they are more involved in discussions on strategic initiatives like risk management, resilience sustainability, technology, and digitization mergers and acquisitions, as well as culture and talent.

A well-rounded board of directors should consist of composed of both inside and outside directors. The inside directors are employees or major shareholders of the company and are an essential source of knowledge and insight. Outside directors have knowledge and connections that are valuable to the company.

A strong board is one made up of people who care for each other and are united around shared goals and values. This creates a thriving boardroom and ensures that meetings are constructive.

https://boardshould.com/who-needs-a-seat-on-your-strategic-planning-team/

Share

Share on facebook
Share on twitter
Share on linkedin
Share on google
Share on whatsapp
Share on pinterest

Leave a Comment