What Does a Board Director Do?
A board director is someone who is responsible for the management of a non-profit or a business. They are legal representatives of owners (shareholders/stockholders) and are legally responsible for high-level decisions. They also decide on policies, whether dividends are paid, and how much the compensation received by upper management.
A successful board member must be skilled in their area of expertise, and able to quickly learn about new industries. However, they should also be able to grasp and apply abstract concepts like strategy and innovation. They should be in a position to challenge the established norm, ask difficult questions, and build trust among the team. In the past, boards focused primarily on oversight of management, but they are increasingly involved in the discussion of strategic initiatives like resilience and risk management, sustainability, technology and digitization, possible mergers and acquisitions, as well as cultural and talent development.
Ideally, a well-rounded board of directors should consist of a combination of inside and outside directors. Inside directors are either employees or major shareholders and are a source of information and insights. The outside directors bring knowledge and connections that are valuable to the company.
A solid board is a group of people who care for one another and are united around shared goals and values. This creates a thriving boardroom, and helps ensure that meetings are productive.
