The board of directors operates as the representatives of the firm’s stockholders. Elected by the stockholders, the board has these major responsibilities:
- To elect the company’s top officers, the foremost of whom is the CEO.
- To establish the compensation levels of the top officers, including their salaries and bonuses.
- To determine the amount and timing of the dividends paid to stockholders.
- To sets broad company policy on such matters as labor-management relations, product or service lines of business, and employee benefit package.
- To set company objectives and to authorize managers to implement the long-term strategies that the top officers and the board have found agreeable.
- To mandate company compliance with legal and ethical dictates.