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."
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.
Core Deliverables:
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.
- Oversight of all regulatory compliance areas.