Chris Adishian is available to serve as a Board member on a limited number of for-profit Boards of Directors at any given time. He will review for profit Board member opportunities on a case by case basis.
Companies, shareholders, fellow board members and management value Chris as a Board member for his leadership, judgment, breadth of knowledge, goodwill, reliability and integrity.
What is the role of the Board of Directors?
The Board of Directors plays a crucial role in the governance and strategic direction of for-profit companies in California. Ideally, composed of professionals and executives with relevant leadership experience, Board members are responsible for (1) Governance and Strategy, (2) Executive Oversight, (3) Setting the Culture, (4) Financial Supervision and (5) representing the interests of the shareholders. This article explores some of the important roles of the Board of Directors of for-profit companies in California.
Governance and Strategic Planning:
One of the primary responsibilities of the Board of Directors is to establish the company’s governance framework. The Board defines the company’s mission, vision, culture and develops strategic goals and objectives. The Board sets the direction for the organization, monitors performance, and ensures that management aligns with the established strategic plan.
Executive Oversight:
The Board of Directors acts as a check and balance to executive management. They appoint and evaluate the performance of the CEO and other top executives, ensuring they possess the necessary skills and experience to lead the company effectively. By providing guidance and oversight, the Board helps maintain transparency, accountability, and ethical conduct within the organization.
Setting the Culture: Risk Management and Compliance:
In addition, Boards help establish the corporate culture including operating philosophy, financial reporting, legal compliance, and ethical standards. By diligently monitoring risk and compliance, the proper functioning Board works to provide for the long-term financial success of the Company, protect the company’s reputation and mitigate potential legal liabilities.
Financial Oversight:
The Board of Directors has a fiduciary duty to act in the best interest of the company and its shareholders. The Directors monitor financial performance, review budgets, and ensure the company operates within its financial means. Board members also provide expertise and guidance in financial matters, including investment decisions, capital allocation, and financial reporting.
Representing the Shareholder’s Interests:
Traditionally, the Board of Directors represents the interests of the shareholders. The shareholders of course own the Company and vote to put the individual Directors onto the Board. Over time shareholders in some companies have asked their Board members to incorporate other stakeholders such as employees, customers, and the community in their decisions affecting the company. Under either approach a high-functioning Board is key to the enhancing the long term financial success of the company.
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