Board Director is the title of an individual who works to govern a company or a non-profit. They are legal representatives of owners (shareholders/stockholders) and are legally responsible for high-level decisions. They also make decisions on the policies and dividends, whether dividends are paid and what compensation the top management receives.
A good board member needs to be competent in their area of expertise and be able to quickly learn about new industries. But, more importantly they must be able understand and apply abstract concepts such as strategy and innovation. They should be able ask tough questions, challenge the status quo and build trust within the team. In the past, boards were focused mostly on oversight https://boardshould.com/6-tips-to-make-young-directors-effective/ of management however, they are now more involved in discussions about strategic initiatives, including risk management, resilience as well as sustainability, technology and digitization mergers and acquisitions, the culture and talent.
A well-rounded board of directors should comprise made up of both inside and outside directors. The inside directors are employees or significant shareholders of the company, and are a valuable source of insight and knowledge. Outside directors have experience and relationships which are beneficial to the company.
A solid board is made up of people who share the fundamental values and goals and are genuinely concerned about each other. This creates an efficient boardroom and guarantees that meetings are productive.
