“Directors approximately spend 200 hours per year on board services”
Many of the duties and responsibilities, expected of board members, involve work performed in various committees, such as auditing, compensation, reviewing CEO performance, nominating and governance, as well as in other potential specialized committees. Boards strive to manage resources efficiently and effectively and correctly represent the corporation and the products and services that it offers while also ensuring that every decision is made in the best interest of the organization’s stockholders and/or stakeholders.
“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, including areas of governance, such as fiscal accountability, material events and any policies that may have been enacted, to the investors.
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.