Editing Management (section)

===Top management===
The top or senior layer of management is a small group which consists of the [[board of directors]] (including [[non-executive director]]s, [[executive director]]s and [[independent director]]s), [[President (corporate title)|president]], [[Vice president|vice-president]], [[CEO]]s and other members of the [[Corporate title|C-level]] executives. Different organizations have various members in their C-suite, which may include a [[chief financial officer]], [[chief technology officer]], and so on. They are responsible for controlling and overseeing the operations of the entire organization. They set a "[[tone at the top]]" and develop [[strategic planning|strategic plans]], [[Policy|company policies]], and make decisions on the overall direction of the organization. In addition, top-level managers play a significant role in the mobilization of outside resources. Senior managers are accountable to the shareholders, the general public, and public bodies that oversee corporations and similar organizations. Some members of the senior management may serve as the public face of the organization, and they may make speeches to introduce new strategies or appear in [[marketing]].

The board of directors is typically primarily composed of non-executives who owe a [[fiduciary]] duty to shareholders and are not closely involved in the day-to-day activities of the organization. However, this varies depending on the type (e.g., public versus private), size, and culture of the organization. These directors are theoretically liable for breaches of that duty and are typically insured under [[directors and officers liability insurance]]. [[Fortune 500]] directors are estimated to spend 4.4 hours per week on board duties, and median compensation was $212,512 in 2010. The board sets corporate strategy, makes major decisions such as major acquisitions,<ref>[http://www.gsb.stanford.edu/sites/default/files/documents/03.Board%20Duties.pdf Board of Directors: Duties & Liabilities] {{webarchive|url=https://web.archive.org/web/20140324044348/http://www.gsb.stanford.edu/sites/default/files/documents/03.Board%20Duties.pdf|date=2014-03-24}}. Stanford Graduate School of Business.</ref> and hires, evaluates, and fires the top-level manager ([[chief executive officer]] or CEO). The CEO typically hires other positions. However, board involvement in the hiring of other positions such as the [[chief financial officer]] (CFO) has increased.<ref>DeMars L. (2006). [http://www.cfo.com/article.cfm/7109019 Heavy Vetting: Boards of directors now want to talk to would-be CFOs — and vice versa]. ''CFO Magazine''.</ref> In 2013, a survey of over 160 CEOs and directors of public and private companies found that the top weaknesses of CEOs were "[[mentoring]] skills" and "board engagement", and 10% of companies never evaluated the CEO.<ref>[http://www.gsb.stanford.edu/cldr/research/surveys/performance.html 2013 CEO Performance Evaluation Survey]. Stanford Graduate School of Business.</ref> The board may also have certain employees (e.g., [[internal auditor]]s) report to them or directly hire independent [[General contractor|contractors]]; for example, the board (through the [[audit committee]]) typically selects the [[auditor]].

Helpful skills for top management vary by the type of organization but typically include a broad understanding of competition, world economies, and politics.<ref>Kleiman, Lawrence S. (2010), [http://www.referenceforbusiness.com/management/Log-Mar/Management-and-Executive-Development.html Management and Executive Development], ''Reference for Business: Encyclopedia of Business'', accessed on 1 November 2024</ref> In addition, the CEO is responsible for implementing and determining (within the board's framework) the broad policies of the organization. Executive management accomplishes the day-to-day details, including instructions for the preparation of department budgets, procedures, and schedules; appointment of middle-level executives such as department managers; coordination of departments; media and governmental relations; and [[shareholder]] communication.