What types of Boards of Directors are there?
There are several different types of Corporate Boards that govern contractors. Although some boards are either unaware, uninformed, or simply do not take the time to find out how they govern, others choose to determine where they are and where they want to be positioned in order to maximize their ability to govern. Below are the three most common structures for construction Corporate Boards:1. Managed Board. The Managed Board typically has a strong CEO who also holds the chairman position, and consists mostly of insiders as board directors. Here the CEO maintains extensive influence over the selection of board members. These members usually unanimously support all CEO decisions. 2. Governed Board. The Governed Board typically includes a balance of strong outside directors, a strong CEO and a strong committee chairman. Board nominees are selected by outside directors, but with input from the CEO. The board meets independently of construction employer management and board directors spend a great deal of time discussing construction employer strategy and direction. 3) Directed Board. The Directed Board typically has strong outside directors with the CEO and Chairman positions held separately. These boards have a large percentage of outside directors and are clearly independent from the CEO and from the rest of construction employer management. They also have significant input and control over major construction employer management decisions.
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