Corporate Governace Role of Borad of Directors
If the board of directors have been more involved then I think maybe they would have caught on that there were fraudulent and unethical activities happening. However, since they were not proactive they were not able to stop the misbehavior from the company’s employees. The board of directors were to be held with as much fault as the culpants. The tax evasion, inflated profits, commingling of assets was illegal and the unauthorized bonuses that they were handing out were not authorized, but they still continued to do it. They also paid off other officials to remain quiet. Overall, the harmful parties knew what (Stanwick A.(they were doing was illegal, unethical, and costly to Tyco. &D. )
The Role of the Board of Directors
File C5-71
Written September, 2009
[pic]pdf format
the role of the board of directors to hire the CEO and assess the overall direction and strategy of the business. The CEO is responsible for hiring all of the other employees and overseeing the day-to-day operation of the business. Problems usually arise when these guidelines are not followed. Conflict occurs when the directors begin to meddle in the day-to-day operation of the business. Conversely, management is not responsible for the overall policy decisions of the business.
The seven points below outline the major responsibilities of the board of directors.
1) Recruit, supervise, retain, evaluate and compensate the manager. Recruiting, supervising, retaining, evaluating and compensating the CEO or general manager are probably the most important functions of the board of directors. Value-added business boards need to aggressively search for the best possible candidate for this position. Actively searching within your industry can lead to the identification of very capable people. Don’t fall into the trap of hiring someone to manage the business because he/she is out of work and needs a job. Another major error of value-added businesses is under-compensating the manager.
The Role of the Board of Directors
File C5-71
Written September, 2009
[pic]pdf format
the role of the board of directors to hire the CEO and assess the overall direction and strategy of the business. The CEO is responsible for hiring all of the other employees and overseeing the day-to-day operation of the business. Problems usually arise when these guidelines are not followed. Conflict occurs when the directors begin to meddle in the day-to-day operation of the business. Conversely, management is not responsible for the overall policy decisions of the business.
The seven points below outline the major responsibilities of the board of directors.
1) Recruit, supervise, retain, evaluate and compensate the manager. Recruiting, supervising, retaining, evaluating and compensating the CEO or general manager are probably the most important functions of the board of directors. Value-added business boards need to aggressively search for the best possible candidate for this position. Actively searching within your industry can lead to the identification of very capable people. Don’t fall into the trap of hiring someone to manage the business because he/she is out of work and needs a job. Another major error of value-added businesses is under-compensating the manager.