A board of directors is a set comprised of shareholders who are elected to represent the interests of the business. The board comprises the chief executive officer (CEO), senior managers and eminent individuals who are not involved Check Out in day-today operations. It sets high-level strategy and supervises management, and meets regularly to review performance and track the progress. It also approves major corporate transactions, including mergers, purchases, stock splits and new launches of products. The board also determines guidelines for compensation for the CEO and other executives and makes sure they are in line with organizational goals. It also manages risks, and oversees operations and financial performance and the preparation of annual budgets and reports.

A successful board requires diversification of viewpoints and expertise. The best boards are active and involved, addressing issues that could affect their business, including strategy and culture leadership succession and management of talent governance and risk, sustainability and digital transformation, and possible mergers and acquisitions. They provide oversight and guidance on these issues while maintaining the essential distinction between their role and that of management.

To perform their roles and responsibilities effectively most effective board members work more closely with the CEO to understand the company’s strategy and vision and the challenges and risks. They are prepared to participate in meaningful discussions that focuses on strategic planing, oversight and accountability. They make decisions that are in the best interest of the company, while maintaining their independence and avoiding conflict of interests.