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Alexa Actionable Analytics for the Web. Sell on Amazon Start a Selling Account. AmazonGlobal Ship Orders Internationally. Amazon Rapids Fun stories for kids on the go. ComiXology Thousands of Digital Comics. The board is made up of individuals the "directors" who are elected by the shareholders for multiple-year terms.
Many companies operate on a rotating system so that only a fraction of the directors are up for election each year. In most cases, directors:. Directors are often tied to major vendors to strengthen important relationships. For example, you'd expect to see a high-ranking employee of The Coca-Cola Company on the board of directors at McDonald's Corporation, or vice versa, given their mutually beneficial relationship.
The number of people on a board of directors can vary substantially between companies and can range anywhere from 3 to In the United States, the majority of board directors must meet the requirements of "independence," meaning they are not associated with or employed by the company. Another responsibility of the board of directors is establishing the audit and compensation committees.
The board members select, hire, and work with an outside auditing firm that does the auditing. In recent years, many boards of directors have come under fire for allowing executive salaries to reach unjustifiably high levels. In exchange for providing their services, corporate directors are paid a yearly salary, additional compensation for each meeting they attend, Abracabra Position - Various - Board Music II (File), stock options, and various other benefits.
The total amount of directorship fees vary from company to company. The compensation directors receive, along with any other benefits, short biographical information, age, and level of existing ownership in the business is found in a special document known as the proxy statement. Generally, it is considered a good sign to have directors with substantial ownership stakes in the business under their care because they truly walk in the shoes of the outside shareholders in many respects.
The particular ownership structure of a corporation has a huge impact Abracabra Position - Various - Board Music II (File) the effectiveness of the board of directors to govern. In a company where a large, single shareholder exists, that entity or individual investor can effectively control the corporation. If Abracabra Position - Various - Board Music II (File) director has a problem, he or she can appeal to the controlling shareholder.
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