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It is crucial to note that while boards are expected to represent the interests of shareholders, the relationship between a CEO and their board can often be complex. Many boards aim to inject long-term thinking into business operations, counteracting the risk of CEOs focusing too heavily on immediate profits, which may jeopardize future sustainability.
Compensation and Board Dynamics
Compensation for board members can be substantial. According to recent filings, Meta's directors earned between $397,000 and $4.2 million in 2023. Furthermore, seasoned board members typically hold multiple positions across various companies. This overlap can lead to a club-like atmosphere, whereby established relationships and networks play critical roles in board appointments and decisions.