The Role of Board of Directors

A Corporate Board of Directors is a group of elected individuals responsible to represent the shareholders of a company.  The Board members are the highest governing authority for  a publicly traded company.   Their top goals are to ensure a shareholder return on investment and to protect the financial assets of the company.

• Selecting and appointing a CEO
• Reviewing and evaluating the CEO’s performance
• Acquiring sufficient resources for the organization
• Accounting to the stockholders
• Understanding the competitive landscape
• Sharing in-depth strategic insights
• Defining vision and goals
• Identifying and focusing on critical issues
• Defining strategies and initiatives
• Reviewing progress

Of note, in 2011 the Corporate Directors who were also members of the National Association of Corporate Directors (NACD) outlined their top learning priorities below:

• Business Strategy:  72.1%
• Corporate Performance & Valuation:  40.6%
• Risk Mitigation/Crisis Oversight:  27.1%
• Talent Management:  25.8%
• CEO Success:  25%

NACD advances exemplary board leadership – for directors, by directors. Our team provides the information and insights that board members rely upon to confidently navigate business challenges and enhance long-term shareowner value. Importantly, directors and boards turn to NACD to gain the knowledge and wisdom to become a strategic asset to their companies, and NACD amplifies the collective voice of directors in the national dialogue on board governance issues. NACD is the

The CEO is the highest ranking executive in a company. The CEO’s responsibilities include:

• Developing and implementing high-level strategies
• Making major corporate decisions
• Managing the overall operations and resources
• Acting as the main point of communication between the board of directors and the corporate operations

The Role of Board of Directors?

Highlights by David Willden