Board Of Directors - B Of D

Dictionary Says

Definition of 'Board Of Directors - B Of D'

A group of individuals that are elected as, or elected to act as, representatives of the stockholders to establish corporate management related policies and to make decisions on major company issues. Such issues include the hiring/firing of executives, dividend policies, options policies and executive compensation. Every public company must have a board of directors.
Investopedia Says

Investopedia explains 'Board Of Directors - B Of D'

In general, the board makes decisions on shareholders' behalf. Most importantly, the board of directors should be a fair representation of both management and shareholders' interests; too many insiders serving as directors will mean that the board will tend to make decisions more beneficial to management. On the other hand, possessing too many independent directors may mean management will be left out of the decision-making process and may cause good managers to leave in frustration.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Nomination Committee

    A committee that ...
  2. Robert A. Eckert

    The ...
  3. Inside Director

    A board member ...
  4. Outside Director

    Any member of a ...
  5. E-Meeting

    A meeting that ...
  6. Non-Executive Director

    A member of a ...
  7. Ballot

    The ...
  8. Corporate Action

    Any event that ...
  9. Business Judgment Rule

    A regulation ...
  10. Chair Of The Board - COB

    The most ...

Articles Of Interest

  1. Corporate Kleptocracy At RJR Nabisco

    The excess of the '80s brought about reckless spending and indulgent management. This is a story of both.
  2. The Basics Of Corporate Structure

    CEOs, CFOs, presidents and vice presidents: learn how to tell the difference.
  3. Catching Comeback Stocks For Clients

    We'll give you the clues you need to assess which stocks can make a turnaround.
  4. Pages From The Bad CEO Playbook

    Excess compensation, golden parachutes, tunneling and IPO spinning make these bad executives even worse.
  5. Governance Pays

    Learn about how the way a company keeps its management in check can affect the bottom line.
  6. Reining In CEO Rewards

    Could bloated CEO compensation be to blame for the widening gap between the rich and the ultra-rich?
  7. IPO Basics: What Is An IPO?

    Learn how the first public sale of a stock (or how ''going public'') can affect your stock.
  8. Do ETFs have a board of directors?

  9. Retirement Savings Tips For 35- To 44-Year-Olds

    Learn how the "sandwich generation" can save for retirement while taking care of their kids and parents.
  10. Derivatives 101

    Learn how to use this type of investment as an alternative way to participate in the market.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center