“Directors approximately spend 200 hours per year on board services”
The primary role of a board of directors is to create and maintain the company’s strategy. Many of the duties and responsibilities expected of board members involve work performed in various committees such as auditing, compensation, reviewing CEO performance, nomination and governance. A single board can have a number of committees, each dedicated to one of these areas, that require significant time commitment from the members involved.
“Thus, the extra responsibilities accrued with a board appointment must be carefully weighed against your current workload and personal obligations”
The board reports the performance of the corporation to the investors, including areas of governance such as fiscal accountability, material events and any policies that may have been enacted. Thus, boards generally strive to manage their resources efficiently and effectively to correctly represent their company and its goals and to ensure that every decision made is in the best interest of their stockholders.
Directors generally prepare for board meetings ahead of time, allowing for active and insightful participation during meetings. Typically, three hours of preparation are spent for every hour of actual board meeting time. This may include reviewing financial documents and annual reports, performing industry and competitor research, consulting with colleagues and other committee members and reviewing relevant newspapers and industry journals.