In corporate management, the board of directors is the top team that is responsible for the entire company. The board determines the vision and mission as well as goals and also weighs in with strategic planning, mergers and purchases, operating budgets, capital budgets, compensation decisions, and other issues. The board is also accountable for hiring and firing the CEO and setting executive pay rates as well as bonuses, profit sharing, and employee stock options. Boards are usually arranged around committees with specific duties. For example the audit committee collaborates with the company’s auditors, while the compensation committee handles issues such as salary rates and stock option grants.

The role of a Board is essentially to act as the corporate conscience, ensuring that homework is done and that criteria are carefully considered before submitting them for approval by management. Some presidents with a strong sense of discipline use the board as a method in enforcing quotas and other performance measures, and also to evaluate the performance of their subordinate executives.

Directors generally do not get involved in the management of purpose of the board job description policy at a lower level decisions, however they do play a crucial role in establishing big policies for the company. They make crucial decisions for the company, including closing facilities. They decide where to invest the company’s money and they set long-term goals for growth, quality financial, and human resources. The board should also set guidelines to conduct its business and address legal issues like conflicts, director independence, community benefits, and CEO evaluation.