Board of Directors (B of D)

A company’s board of directors is an oversight group acting on behalf of shareholders and elected by the board’s nominations committee. The board sets the company’s strategy, agrees on company policies, sets dividend policy, and oversees the executive management team, including deciding executive compensation. Boards have internal and external members and in certain countries must have members representing employees. In some countries, companies are required to split their boards into management boards and supervisory boards.