On December 23rd, Disney announced the election of Twitter co-founder Jack Dorsey to the Board of Directors. He’s joining another social media superstar, Sheryl Sandburg of Facebook.
Jack Dorsey is also the founder of Square, and recently returned 10% of his stock to the company to increase employee compensation (something he can well afford, thanks to his billionaire status).
A press release from Disney included the following quote from Disney CEO Robert Iger:
“Jack Dorsey is a talented entrepreneur who has helped create groundbreaking new businesses in the social media and commerce spaces,” said Robert A. Iger, Disney’s chairman and chief executive officer. “The perspective he brings to Disney and its Board is extremely valuable, given our strategic priorities, which include utilizing the latest technologies and platforms to reach more people and to enhance the relationship we have with our customers.”
It’s clear that Disney is heavily invested in the digital space after all, Disney bought this lovely website in 2011 and including a social media pioneer like Jack Dorsey on the board isn’t a surprising move.
So what does a board of directors do? Here’s a simple definition from WiseGeek:
“A company’s board of directors provides the company with direction and advice. It is their responsibility to ensure that the company fulfills its mission statement and in doing so, it will frequently set the company’s overall policy objectives. For these reasons, a good board of directors includes knowledgeable and experienced business people.”
The company CEO is a member of the board of directors, but is the only board member involved in the day-to-day business of a company. The Board often has control over who is hired as CEO as well, and is eventually responsible for the financial well-being of an organization. Board members often meet monthly or a few times a year.
It will be fascinating to see what influence Jack Dorsey brings to Disney.