Question

Discuss how 4 individuals seeking to form a business company may address the issue of compensations for Directors and senior management in their company.

Answer 1

The term Director is a title given to senior management of businesses and other large organizations.

The term is commonly used by two different meanings, this choice of influence is influenced by the size and scope of the organization and its geographical-historical context. In addition, the term is used in relation to different technical definitions specific to corporate governance laws in each country.

Therefore, a director can be:

(1) The person assigned to carry out the functions of the senior management of the company itself (managing director) or key function in which case the title is similar and supersedes this "C-Suite" title.
(2) A person from a group of managers who own or control a specific area of ​​the company, which can be regarded as the universal British / American meaning of the word.

(3)
Persons holding "leads" in the legal sense have specific obligations and responsibilities for managing the company they are appointed on the board of directors.

(4) In companies that use this term in the final sense, it is common for directors to be assigned different roles or business roles (eg, HR directors). In this case, the directors often report directly to the Vice President or directly to the CEO to inform them of the progress of the organization. Large organizations may also have an "assistant" or "vice president". In this context, directors often refer to the lowest executive power in an organization, but many large companies use the position of vice president more often.

When used by a company used as a division head in English, the term "executive" means that the owner is appointed to the board in a legal and responsible manner and / or portion Finance in business. Unlike the British-American context, "executive" is similar to vice president or senior vice president in some businesses.

Such a company may also have a "Regional" and / or "District Director" with a local director title that is used by the company, which is organized by location and has its own department at the bottom that indicates responsibility. Almost all for operations for their specific country.