Director FAQ: The Role of the Board vs. the Role of Management
In brief: As the corporation’s ultimate decision-making body, the board of directors plays two critical roles: overseeing management on behalf of shareholders and other constituencies; and advising management, albeit with limited involvement in everyday company operations. In contrast, members of management are full-time employees whose main responsibility is to operate the company. This memo explores the differences and overlaps between the roles of directors and managers of for-profit enterprises.
This resource can help you
- Define the dividing line between the role of the board and the role of management
- Review common expectations of directors
- Overcome challenges in the relationship between the board and management
Most relevant audiences: First-time directors