Board directors are accountable to ensure that the executive management of a company is acting in the best interests of the company. They also review a company’s financial performance and ensure that it meets ethical and legal requirements. They are also accountable for setting and approving executive compensation. The board usually works through sub-committees focusing on specific issues. The board is usually comprised of a wide group of individuals with different skills and backgrounds. Former CEOs, accountants, and financiers are often on the board.
The benefits of serving on a committee can be multiple and can be extremely advantageous to your professional career. For example, it can help strengthen a range of professional competencies, for example, working with other business leaders and stakeholders from different areas of the company. This will increase your credibility and visibility as a leader within the business community, as well as your network of board members that Board Directors could lead to opportunities in the future.
Based on the type of organization, it is common for boards to offer monetary compensation and exclusive benefits for their members. These can include perks like the use of a business jet or exclusive products. This is often a motivating factor for a lot of board members. If you’re thinking about becoming a member of a board, it’s important to know the potential obligations. If the articles of incorporation don’t restrict the liability of directors to intentional misconduct, you could be sued by aggrieved people.
