Two-tier board

Updated: Aug 20, 2021

A system of company organization in which there are two boards of directors. Overall policy is decided by a supervisory board, on which employees as well as the shareholders are represented, and day-to-day management decisions are taken by a management board. The object of this division is to promote information and goodwill among employees by having their representatives on the supervisory body, while retaining the authority necessary for the managers to execute policies effectively through the management board. This system is relatively common in Germany.

Reference: Oxford Press Dictonary of Economics, 5th edt.

Sources & references
Risk disclaimer
James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.