Over the past 20+ years, the women we’ve worked with consistently share that their membership has helped them gain valuable insights from every meeting, build connections with accomplished individuals, and enhance their personal brand and reputation. Board service can also support career advancement, as the knowledge and skills gained directly benefit both your professional growth and your current employer. It is, of course, essential to ensure that the board you join aligns with your goals. For this, I recommend adapting a version of the “5 C’s” I use in hiring decisions.
- Capabilities: Do you have the right background and capabilities that the board is looking for?
- Character: Does this board, its values and mission align with your personal values and character?
- Chemistry: Do you have good chemistry with the hiring committee?
- Culture: Would you be a good fit with the board culture?
- Common Sense: Does the decision make sense with your short and long-term career goals.
Once you’ve identified the board that’s the right fit for you, the next question you’re likely to consider is, “What about compensation?”. At Women in the Boardroom, our focus is solely on helping women secure paid board seats. We are committed to ensuring that women do not feel pressured to volunteer one more minute of their time without compensation.
However, while the financial aspect is important, it’s only one piece of the puzzle. The true value of board service often lies in the broader professional and personal growth opportunities it provides.
Compensation Ranges Widely
Quite often, like in a typical corporate setting, compensation comes in a package that could include retainers, fees for meeting attendance, a year-end bonus, stock grants, stock options, and other additional benefits. Compensation for publicly-held and privately-held companies is greatly dependent upon the size of that company. For publicly-held companies, board members can expect to earn anywhere between $75,000 and $500,000 annually, depending on the company’s size. These packages usually combine cash and stock options, allowing you to have a stake in the company’s success. And while privately-held companies can offer compensation packages that mirror their public counterparts, the key difference is in the liquidity of the stock. Serving on the board of a private company means those stock options aren’t readily sellable—at least not while you’re still in the role.
An interesting point to note: some boards may allow directors to defer their income and often require them to hold stock long-term. So, it’s not just a quick financial gain—it’s a commitment to the company’s long-term success.
Beyond the Money: The Intangibles of Board Service
While the financial perks are a draw, there are other benefits to serving on a corporate board that are equally, if not more, important. From a strategic standpoint, board service offers intellectual stimulation and personal growth, keeping you engaged at the highest level of business decision-making.
It also elevates your professional profile. Serving on a board enhances your resume and can open doors to new opportunities, whether it’s additional board positions or other leadership roles. The experience is invaluable, and many executives find board service to be a natural extension of their careers.
And let’s not forget the personal fulfillment that comes from making a real difference in an organization’s governance and direction. It’s an opportunity to give back by guiding a company’s future, sharing your expertise, and helping navigate its challenges.
Choosing the Right Board for You
Of course, before you start imagining yourself in a boardroom chair, it’s important to consider that boards aren’t just looking for anyone—they’re looking for the right fit. Boards are in search of potential board members with the knowledge and experience to provide effective and valuable governance. However, it’s important to remember that the interview process is a two-way street. You are also interviewing the board to ensure they are the best fit not only for your skill-set and expertise but also assessing whether the board aligns with your values, and whether its culture is a good match.
Board service is more than a financial reward; it’s a commitment to guiding a company’s future with your expertise. So while it’s tempting to focus on the compensation, remember that the real value comes from the experience, the influence, and the impact you’ll have as a board director.
If you’re ready to explore what it takes to land a board seat, I’d love to continue the conversation. Feel free to reach out to me directly.
Sheila Ronning, CEO & Founder, Women in the Boardroom.
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