The board of directors of a public company is elected by shareholders. The board makes key decisions on issues such as mergers and dividends, hires senior managers, and sets their pay. Board of directors candidates can be nominated by the company's nominations committee or by outsiders seeking change. Public companies must have a board of directors. The New York Stock Exchange and the Nasdaq require that the majority of members on the boards of listed companies be outside, or independent, directors.
Glossary
Board of Directors
Definition
A board of directors (BoD) is the governing body of a company, whose members may be elected by shareholders to set strategy, oversee management, and protect the interests of shareholders and stakeholders.