The Board of Directors is basically a group of individuals which is selected by the corporations’ shareholders. The group is responsible to oversee the operation and the management of the organization. They are usually paid in either cash or in stock of the company on multiple occasions in the financial period. They are also held legally responsible for the activities and actions of the business under their supervision.The main responsibility of the board of directors is to manage and protect the shareholders assets and to strive to make the company provide a decent return on investment of the shareholders. Aside from this they also establish the audit of the management in the company and decide the compensation plans and job description of the senior managers at the company. “In recent years, many boards of directors have come under fire for allowing executives salaries to reach unjustifiably absurd levels.” (Kennon, 2007) They are usually responsible for appointing a CEO for the company. They are also yield a higher degree of power than the CEO as they can hire and lay off people in this position.