Wednesday, January 11, 2017

Responsibilities of the Board of Directors

Anthony W. Deering currently serves as a Director of Under Armour and Brixmor Property Group. Born in Chevy Chase, Maryland, Anthony W. Deering brings a vast amount of skill and experience to his role as chairman, member, or trustee on the boards of a number of well-respected financial institutions and nonprofit organizations.

Elected by the shareholders, a company’s Board of Directors is generally the highest decision-making body. The board's primary function is not to oversee day-to-day operations. Rather, the purpose of its oversight is to ensure that standards of accountability are being met. The Board of Directors' primary responsibilities include:

1. Appointing the chief executive officer.

2. Establishing and reviewing strategic plans and objectives.

3. Developing compensation packages in keeping with strategic plans and objectives.

4. Establishing policies and the organizational framework the management operates within.

In its oversight role, the board is a critical factor in keeping a corporation's financial system operating in a sound manner. Effective board members also have a solid understanding of what services the institution offers, and the risks that it faces.