<P> The law requires companies listed on the major stock exchanges (NYSE, NASDAQ) to have a majority of independent directors--directors who are not otherwise employed by the firm or in a business relationship with it . </P> <P> According to the Corporate Library's study, the average size of publicly traded company's board is 9.2 members, and most boards range from 3 to 31 members . According to Investopedia, some analysts think the ideal size is seven . State law may specify a minimum number of directors, maximum number of directors, and qualifications for directors (e.g. whether board members must be individuals or may be business entities). </P> <P> While a board may have several committees, two--the compensation committee and audit committee--are critical and must be made up of at least three independent directors and no inside directors . Other common committees in boards are nominating and governance . </P> <P> Directors of Fortune 500 companies received median pay of $234,000 in 2011 . Directorship is a part - time job . A recent National Association of Corporate Directors study found directors averaging just 4.3 hours a week on board work . Surveys indicate that about 20% of nonprofit foundations pay their board members, and 2% of American nonprofit organizations do . 80% of nonprofit organizations require board members to personally contribute to the organization, as BoardSource recommends . This percentage has increased in recent years . </P>

Who is elected to supervise a publicly traded firm's managers for the shareholders