eli5: How do corporate Boards of Directors work? What is their function? Do they get a salary? Isn’t there a conflict of interest if a CEO of one company is on the board of another company? Do all companies have them? If not, which companies have them and why?

Question

eli5: How do corporate Boards of Directors work? What is their function? Do they get a salary? Isn’t there a conflict of interest if a CEO of one company is on the board of another company? Do all companies have them? If not, which companies have them and why?

In: 66

Answer 1

Others have talked about what Boards are, but not answered the last part. In the US, to have a corporation, you must have a Board of Directors. Granted since the vast vast majority of corporations are private, this typically means the Board of Directors are simply executives and reps for any investors in the company as they are likely the only stockholders.