Most people believe that the CEO is the most powerful person in a company. However, there is a group of leaders, called the board of directors, that has even more power than the CEO.
The board of directors, commonly referred to as “the board,” is a group of leaders responsible for representing shareholders in company decisions. Most boards have between seven and ten members. The board is ultimately responsible for the effective operation of the company.
Most company boards meet once a year, with occasional interim meetings as necessary. The board’s responsibilities include selecting top executives, such as the CEO, and overseeing the company’s performance and strategy.
Board directors usually consist of retired business executives and other highly accomplished professionals. Directors also make significant amounts of money.