Directors vs. officers

Karolina · #1 May 5, 2007, 05:12 PM

Hello,
Can anyone tell me the difference between a director of a company or an officer? Does one have more control over another?

Thank you in advance.

phillysteakandcheese · May 7, 2007, 10:24 AM

Public companies are structured into two "levels" of authority. In really simple terms:

The Board of Directors ... Are elected by the Shareholders of the company.
Corporate Officers ... Are hired by the Board as the Executive Management that runs the company.

Anyone on the Board is considered a Director. The Board usually includes at least some of the executive officers, like the Chief Executive Officer, the Chief Operatiing Officer, or the Chief Financial Officer, but the executive management is repsonsible to the Board and ultimately, the Shareholders.



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