Board directors are accountable for the direction, strategy and performance of an organisation. They are also charged with representing shareholders’ interests and ensuring that management is delivering value. To do this boards must determine what duties they are responsible for and what tasks can be legally delegated to management.
They also have a say on key strategic issues, such as mergers and purchases including stock splits, share repurchases, and dividend declarations. They also have the responsibility of hiring and firing CEOs as well as the determination of the amount of compensation senior executives receive. To achieve this, they have to be prepared to ask tough questions and participate in constructive discussions. Lastly, they are responsible for ensuring the company’s financial health and compliance with regulations and ethical standards.
A successful board member is able to comprehend complex issues and providing insights that increase the effectiveness of the board. They also have the ability to establish a culture that encourages cooperation and collaboration within the boardroom. They are aware of the field they work in and have an in-depth knowledge that allows them to offer an unbiased opinion.
As the world around us gets more complex, so do our corporate responsibility. The COVID-19 virus has taught us that we must improve our speed and agility in order to keep pace with. In the aftermath the majority of boards have expanded their their Board Directors responsibilities and are now focusing more on topics like developing talent and culture sustainability, resilience, sustainability, risk management, as well as digitization and technology. To do this effectively boards must be digitally proficient and prepared for the heightened level of engagement required in order to develop forward-thinking agendas.