Introduction
The Board Chair Job is an authority at a higher position. They are the link between upper people and employees. The Board of directors does vote for the chair position. The head looks after the management and smooth functioning. This position holds power in the company. In case of some problems, the chair can also become CEO of the company. For example, in cases, if CEO has resigned and no other person fits the job. In short Board, the chair acts as a leader to the officers and employees.
What are the essential requirements to become a board chair?
As mentioned above, the board chair acts as a middle man, a responsible leader of the company. A leader is crucial to ensure smooth functioning. They should be fit for the job having qualities like leadership, knowledge, planner, and mediator. During meetings of the Board, the presence of a board chair is essential. The role of the Board includes making an annual planner and looking after other board members.
There are two ways one can become a board chair:
Internal board chair: Internal board directors are employees, shareholders of the company.
External board chair: External directors are executives of other companies. They get selected based on their business solving skills.
Job description
Below listed are the job role, education, and qualification required to be a board chair.
- The board chair may be selected on the spot or beforehand, depending on the company.
- The chair needs to have specific qualifications to take up the meetings smoothly.
- The personality of the chair may get tested at the time of election or selection.
- The chair should have a specific educational qualification.
- They should be aware of the rules during meetings. The chair should know the limitations of the chairman’s position.
- Qualities like patience, team building, perseverance, and being nature friendly are essential to being a board chair.
- The person should not get provoked easily.
- The chair needs to have good judging skills.
- The board chair should stick to the rules and policies.
- The Board has the power to adjourn the meetings due to specific reasons.
- The chair has the authority to decide the sequence of speakers during the session.
Duties
The job role of a chair is not simple. Responsibilities increases with the position. Below is the set of responsibilities a board chair has on its shoulders.
- The board chair plays a vital role in ensuring the efficiency of the Board.
- They stand responsible for the communication with the associative members.
- He is the contact point between all other board members.
- The chair sets the goals and ensures to meet the objectives.
- He provides the full participation of every board member in activities.
- The board chair must know the effective way to handle a formal meeting.
- Propaganda is made for the chair and CEO.
- Motivation is the crucial part that a chair gives to its employees.
- The Vice-chair takes up the chair’s responsibility if the board chair is not able to lead the meeting.
- Depending on the company requirements, every board chair has different functions.
Salary
The amount of salary varies from company to company and is also dependant on the size of the company. In the USA, the average salary of a board chair is around $185,000. They get $122.62 per hour. In addition, they may get extra bonuses and stocks. Therefore, the outsider board chair gets more payment than the insider. The salary of a board chair ranges from $141,000 to $258,000. The salary factors depend on the education, skills, experience in the field, certifications. The top 10 percent make $603,000. Alaska, Hawaii, Washington, Oregon, and Rhode Island are the highest paying regions.
Questions
What are the methods of voting adopted by the board chair?
The board chair performs voting in some weird scenarios. For example, if members’ views vary after a meeting, it becomes problematic to land on a conclusion. In such cases, the board chair performs voting. There are various methods a board chair can keep voting—Voice Vote, Ballot, Poll, Standing vote, etc. Voting will help everyone to come to a particular conclusion.
Who can demand the voting by poll?
The chairperson can demand voting by-poll. A minimum of 5 members can also require voting by-poll. If only seven members are present in the meeting, then at least one can demand to vote. If there are more than seven members, then at least two should agree to vote. Finally, when the chair decides, the secretary distributes the voting paper to the members. It is valid to vote through shareholdings. In the end, the results are declared through the voting papers.
Conclusion
The responsibilities of the board chair include leadership but avoid a bossy attitude. The Board has to look after the management team. The person or authority should ensure counseling. The chair should practice equality to ensure good relations. The chairs should act as a facilitator. A good board chair builds a team. Chairs are mostly experienced CEOs. Being patient makes you a good chair. I hope the details shared are helpful to you.
FAQs
How to Refer the Board member in the US?
The board chair members are referred to as Mr. or Miss, followed by their position on the Board. You can call as Mr. or Mrs. followed by the name or surname of the member. For instance, Mr. Robert or Mr. clave.
Are the board chair and president the same?
No, the board chair and president are different. The president handles the business while the board chair is a member of the Board. The board chair holds the meetings of the Board and looks after the functioning of the Board. The president has to report to the board chair.
For what are the board members restricted to?
The board members should not charge the non-profit. They look after the interests of all shareholders of the company. The members are not allowed to borrow monies. They should not invest the revenue of the company.
