corporate board directors salary
A board of director has legal responsibility for making high-level decisions. This includes the hiring and firing of the CEO, overseeing the strategic direction of the company and ensuring that the company is meeting its objectives. The board of directors is comprised of experts, respected individuals and former executives selected from the community. They are accountable for establishing corporate governance.
A strong board has a clearly defined mission and is open to communication and respect for the diverse views of its members, and accountability to shareholders and other stakeholders. It also has independent directors who are not entangled in conflicts of interest and have an eye on the long-term for the company’s success. The importance of having a formal orientation, creating relationships with members, and having meetings on time is paramount.
A good board member is not just knowledgeable about business, but also curious. They are able to ask constructive questions to the board and to other members which will challenge their thinking and help them make the best decisions. Having niche experience, such as sales or capital-raising expertise can be a great asset.
Boards are increasingly being asked to take on new responsibilities, such as strategic planning, managing resilience and risk. They also have to deal with diversity and inclusion and technological advancements and digitalization. They need to be more technologically proficient, and play a bigger role in the hiring of CEOs and other top leaders. According to McKinsey COVID-19, the pandemic has taught boards to be more proactive when addressing crises and planning for uncertainty.
