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The board of directors in corporate management is the ultimate team that accepts overall responsibility for a company. The board sets the goals, vision, and mission and weighs in on such things as strategic planning, mergers and acquisitions capital appropriations, operational budgets, and the decisions regarding compensation. The board is also accountable for the hiring and firing of the CEO and for setting executive pay www.netboardroom.com/what-is-the-difference-between-vision-and-mission-statements/ rates, profit sharing, bonuses, and employee stock options. The majority of boards are arranged around committees that are focused on specific tasks. 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 boards are the main conscience of an organisation. They ensure that all homework is completed and that criteria are carefully considered before being presented to management for approval. Certain presidents with a keen sense of discipline use the board to to enforce quotas, other performance measures, and to gauge the performance of their subordinate executives.

Directors are not part of the management decisions at a lower level, but they play a significant role in the formulation of major policies for the company. They make decisions that have a significant impact on the company, such as whether to close facilities, for instance. They decide where to invest the company’s funds, and they establish long-term goals for growth, quality, finances and people. The board must also establish guidelines for its conduct and address legal matters like conflicts of interest directors’ independence, conflicts of interest the community benefit, and CEO evaluation.