What Does a Director on the Board of Directors Responsible for Doing?

A director on the board of directors is responsible for the overseeing the management of the company at a high level. Directors elect/appoint the officers, which are the CEO, CFO, CIO, CMO, COO, and other executives in charge of running the organization on a day-to-day level. Directors on the board are elected by the shareholders/owners of the company. Directors also set executive compensation, approve dividends, and have the power to establish committees. Directors also act as the stockholder’s representatives in establishing policies for corporate management and making other decisions on major company issues.

Directors generally do not earn a salary. Some companies compensate directors for their expenses or per meeting attended, and some companies have unpaid directorships. Every corporation must have at least one (1) director. In California, a corporation must have at least 3 directors, unless there are less than 3 shareholders.

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