Board of Directors
The elected body of individuals responsible for overseeing a corporation's management and representing shareholders.
What is Board of Directors?
A board of directors is the governing body of a corporation, elected by shareholders to oversee management and represent shareholder interests. The board hires and fires the CEO, approves major strategic decisions, sets executive compensation, reviews financial reporting, and ensures legal and ethical compliance. Boards typically consist of inside directors (executives of the company) and outside/independent directors (those with no material relationship to the company). Corporate governance best practice calls for a majority of independent directors to reduce conflicts of interest. A 'chairman' leads the board; some companies separate the chairman and CEO roles for stronger oversight.
Example
Apple's board of directors as of 2024 includes eight members, most of whom are independent directors. The board includes CEOs and former executives from other major companies, providing oversight expertise. When activist investor Carl Icahn famously pushed Apple to increase share buybacks in 2013–2014, he worked through public pressure campaigns directed at the board.