An executive board, also called a board of directors, is a group of people that govern and supervise the activities of an organization. Executive board members may be elected by the shareholders of corporations. The board has a wide range of responsibilities that revolve around shaping and implementing the organization's mission and making high-level strategic decisions.
One of the primary duties of an executive board is to govern the organization by creating its policies and goals. The board is tasked with creating the overall mission or objective of the organization and then implementing policies that fulfill that mission. The board may spend time brainstorming and debating the advantages of disadvantages of different policies. Deliberation of this sort can be a large part of the activities of an executive board. To govern effectively, the board must evaluate the various programs, products or services that the organization offers and use that information to shape new programs and policy.
Electing The CEO
Another chief responsibility of an executive board is electing the chief executive of the organization. The board of directors is typically not involved in the day-to- day decisions of an organization but rather plans its overall strategic direction. The board must appoint a chief executive that it feels can carry out the decisions and goals of the board. The board must choose how much to compensate the chief executive and evaluate his or her performance. If an executive does not perform well, the board may decide to appoint a new one.
The board of directors is also tasked with managing resources. The board must plan how to effectively raise and spend money. If the organization is short on resources, it is up to the board to plan where to cut back and how the organization can survive while carrying out its mission.
Another responsibility of an executive board is managing public relations. Public image can be an important part of an organization's ability to carry out its objectives, so the board decides how the organization will interact with the public.
The exact duties of a specific executive board and each member of the board may vary from one organization to another. An organization may have a charter that explicitly states the duties of the board and the responsibilities of each member. For smaller organizations, duties may not be as well-defined.