In corporate governance, directors are elected by whom?

• A. Appointed by president
• B. Elected by employees
• C. Appointed by creditors
• D. Elected by stockholders

Answer: (D)

In corporate governance, ownership control is exercised by stockholders who vote to elect the board of directors at annual or special meetings. The directors then oversee management and hire or oversee the CEO to ensure the company runs in the owners’ interests. The president does not appoint the board in a standard corporation, and while employees or creditors may have influence in specific contexts, they do not routinely elect the board in typical corporate structures. Therefore, directors are elected by stockholders, who own the company.