A board director is someone who supervises the governance of a non-profit organisation or company. They are legal representatives of owners (shareholders/stockholders) and are legally responsible for high-level decisions. They also set policies and decide if they will pay dividends, and decide how much compensation the upper management receives.
A successful board member must be skilled in their area of expertise, and also able to learn quickly about new industries. But most importantly they should be able to comprehend and apply abstract concepts such as strategy and innovation. They must be able to confront difficult questions and challenge the status quo, and build trust within the team. In the past, boards focused primarily on management oversight however, they are now more involved in critical discussions regarding strategic initiatives, such as risk management and resilience as well as sustainability, technology and digitization mergers and acquisitions, culture and talent.
A well-rounded board of directors should be made up of both inside and outside directors. Inside directors are either employees or major shareholders and are a valuable source of information and insights. Outside directors have valuable experience and relationships to the company.
A solid board is a group of people who love each other and work around common goals and core values. This creates a productive boardroom, and https://boardshould.com/5-risks-you-should-be-concerned-with-tips/ helps ensure that meetings are constructive.
