Board directors are accountable for the direction, strategy and performance of an organization. They are also tasked with representing shareholders’ interests and making sure that management is delivering value. To do this, boards must determine which tasks they are responsible for and which tasks can be delegated to senior management.

They also weigh in on important strategic issues like mergers and acquisitions and stock splits, share program repurchases, and declaring dividends. They are also accountable for the hiring and firing of CEOs and determining the compensation of senior executives. To accomplish this, they need to be prepared to ask difficult questions and engage in a constructive debate. They are also responsible for the company’s financial health and compliance with ethical and legal standards.

A competent board member can provide insight and help the board be more effective. They can also build a culture that encourages collaboration and open communication in the boardroom. They are well-versed in the field they work in and have a wealth of experience that allows them to offer crucial advice.

As the world becomes increasingly complicated our corporate responsibilities increase. The COVID-19 pandemic taught us that our businesses must increase their speed and agility in order to keep pace. In the aftermath, many boards have broadened their responsibilities and are focusing on topics such as culture and talent development sustainability, resilience, sustainability, risk management, and technology and digitization. To effectively tackle this boards must be proficient in digital technology and ready for the higher degree of engagement required to develop forward-thinking agendas.