https://allsmarthomecompany.com/virtual-board-rooms-merging-security-and-corporate-strategy/
The structure of a Board of Directors (BOD) or board of trustees is among the most important elements in determining a company or the success of an organization. A well-organized Board will guarantee that each member knows their role and how to fulfill it. It can also assist the company or organization to achieve its goals.
The board is primarily responsible for overseeing the executive board and setting the overall direction of the company. The board is also accountable for the hiring and firing of the CEO, determining the CEO’s pay, determining the compensation of other executives within the company, and making important strategic decisions.
External or independent directors are members of a board that are not in executive positions within the company. They can be paid a fee for their participation. They bring perspectives to the board and are generally experts in the field that the company operates in.
A two-tiered board consists of a board of management comprised of executives from the company, and a supervisory board made up of independent directors. The supervisory board ensures the management board functions in accordance with corporate policies and laws.
A consultative or advisory board is composed of individuals with vested interests in the business such as customers or investors. Advisors can provide information to the top executives of a business and offer different perspectives that may not be available within the company itself. They can also assist in finding growth opportunities and help with the implementation of strategies to achieve the company’s objectives.
