For decades the primary responsibility of the board of directors for many companies was to serve as a conduit between the executive team and the owners/shareholders. In this capacity the board of directors was tasked with communicating the best interests of the shareholders to the executive team, which then allows the executive team to formulate a strategy for executing the company in a way that allows the shareholders to prosper.
While the board of directors was capable of voting in executives, and the executive team had to include the board into major decisions, many executive teams were given carte blanche to run the organization. The issue is that like a democratic government, no one entity should have free reign over the management of the organization, because invariably the interests of the owners will ultimately be overshadowed by the interests of the executive team’s vision.
In these situations the executive team IS NOT...
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