The structure of the Board of Directors or Board of Trustees https://allsmarthomecompany.com/virtual-board-rooms-merging-security-and-corporate-strategy/ is one of most crucial factors that determine the future of a company or organization’s success. A well-organized board will ensure that all members are aware of their responsibilities and how they do it, and it helps to put the company or organization on the right track to reach its desired goals.
The board is essentially the executive board of a company or organization and decides the overall direction for the company. It is also responsible for appointing and firing the CEO, establishing CEO pay, ascertaining compensation for other executives within the company, and taking crucial strategic decisions.
External or independent directors are non-executive members of a board who do not hold executive positions within the company and can be paid a fee to participate. They provide different perspectives to the board and are usually subject-area experts within the field the company operates in.
A two-tiered board comprises of a management board comprised of company executives, and a supervisory council comprised of independent directors. The supervisory board makes sure that the management board operates in accordance with corporate policies and laws.
A consultative or advisory board is comprised of those who have vested interest in the company such as customers or investors. The advisors can provide insight to the top executives of a company and offer diverse perspectives that might not be offered within the company itself. They can also assist with discovering growth opportunities and assist with the development of strategies that meet the goals of the company.
