Board of Directors Menu:
- Page Description - this page includes information related to the role of management versus the Board
- Many Boards find that simple phrases help to remind them of the proper dividing line between Management and Board responsibilities. Some of these are: "Fingers in - noses out." or "ensure that the company is well led, not to lead the company."
Articles & Presentations:
CEO versus the Board:
- The relationship between the CEO and the Board should be carefully managed, and care should be taken in the area of friendships. If friendships are developed a sense of obligation and commitment can possibly inappropriately supersede the Board's responsibilities. If a Board members five closest friends include the CEO - objectivity may suffer.
- Boards should strive to maintain a balance of constructive contention and collaboration should be the goal.
- A Board has certain responsibilities that vary little from company to company. These include:
- CEO - selection, compensation, evaluation, planning for eventual replacement, and replacement when needed.
- Oversight of high-level company activities - strategy, business operations central to business success, and risk management.
- Oversight of financial operations and performance for stockholders.
- Oversight of all regulatory compliance areas.