The Board Of Directors : Executive Officer

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1. Introduction of the Board of Directors The Board of Directors is a group that is constituted by some members who are chosen by the stakeholders of the company. This group stands for the stakeholders to set up the policies that related to corporate governance of the company and to make some important decisions on long-term strategies, such as the employ or dismissal of administrators, dividend policies and establish of committees. It is obligate for every public company to build a Board of Directors. The Board of Directors is usually constituted by various members: Chief Executive Officer (CEO) The CEO is the highest superior director of a company. The responsibilities of CEO are to make long-term decisions, to control all of…show more content…
The Executive Director manages the specific operations of a company and also make decisions with other members of the Board of Directors. Non-Executive Directors The Non-Executive Director is also one of the members of the Board and has responsibility for a company. A Non-Executive Director supervises the Executive Directors and protects the profits of stakeholders. However, the Non-Executive Director do not hold the position of specific duties in a company. 2. Remuneration Committee The Remuneration Committee is a specific organization, which is built by the Board of Directors that is in accordance with the resolution of shareholders meeting. A Remuneration Committee is responsible for establishing and implementing the assessment criterion of the senior executives, in addition, this committee also takes charge of establishing and examining the remuneration policies of the directors and other executives, including money award and compensation payments. 2.1 Different ways to reward the directors Most of directors are encouraged by the payments related to the performance of a company and also can be rewarded by gaining bonuses and pension contributions, and by increasing or achieving dividends of the company for their services to the company. According to some articles, most of companies will give some parts of stocks to directors as rewards, because the connection between the directors’ and
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