An empowered board has the power and authority to monitor the performance of top management and this benefits the management and the shareholders alike. But there are still some obstacles on the road to board empowerment.

In the 1990s, there was a growing trend towards empowerment of directors. Empowerment lends authority and independence to outside directors and allows them to monitor the performance of top management and the company. It permits board members to change the strategic direction of the company when it is necessary.

In most organizations, Chief Executive Officers (CEOs) head the boards. And they are used to treating a powerful and active board as an obstacle. They are used to directors who are content to offer counsel and support management in times of corporate crisis. Now, there is a clear shift towards board empowerment. This development is definitely disturbing to CEOs, who prefer puppet boards. It appears that this trend of board empowerment is going to continue for the time to come. Hence, it is appropriate for the CEOs to change their perceptions regarding the board and its role. If the CEOs prefer to resist this empowerment of boards, they might well be forced to reconcile with it grudgingly.

Board empowerment is not always an unhealthy development as seen by some cynical CEOs. Over and above, empowered directors can help CEOs and their companies, with their valuable experience, benefitting shareholders and the economy. But synergistic relationship between directors and CEOs is not that easy to achieve. This needs that outside directors recognize and respect the difference between monitoring management and managing the company. They should let the CEO to retain power necessary to lead the company while taking the guidance of well informed directors as the corporate performance demands.

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