Our ServicesBoard Appointment
Our philosophy is to generate interviews through “attraction” instead of “promotion,” meaning that rather than hunt for open board seats and promote you to the decision maker, we educate decision makers about you in a critical mass of well researched companies with boards and committees where your background would be applicable, then let the decision maker invite you to the discussion, akin to the concept of permission-based marketing.
What is a Board of Directors?
A board is simply a group of people who are legally appointed with the responsibility to govern an organization. In a for-profit organization, board directors are responsible for representing the interests of the stockholders; in a not-for-profit organization the board members serve the stakeholders, which may include the local community or those served by the organization.
Board Duties & Responsibilities
The board is responsible for planning the long-term future of a corporation. They work side-by-side with management to align the company’s vision with more attainable short-term goals. Boards often work closely with the CEO as well.
On a more day-to-day level, a board member is expected to complete all due diligence and preparation prior to board meetings, attend all board meetings, and actively participate at each meeting. You should follow the basic formula that requires three hours of preparation for every one hour of actual board meeting time. Preparation may include reviewing financial documents, annual reports, performing industry and competitor research, and reviewing relevant newspapers and industry journals. The preparation for a board meeting is not something to be taken lightly.
Provide continuity and a vision that correctly represents the organization’s core values.
Make decisions in the best interests of the stakeholders, including employees, customers, and the community.
Review the performance of the CEO – should the CEO not be performing at the level he/she is expected to, the board is also responsible for selecting and appointing a new CEO.
Report the performance of the organization, including fiscal accountability, budgeting, and any enacted policies.
There must be sufficient resources to keep the operation running efficiently and effectively.
Director compensation is usually a combination of cash and stock. Cash payments include an annual retainer as well as a set payment per meeting and reimbursement for any expenses incurred. Retainer payments depend on the company, the average annual retainer for board directors is 96,649 while average board meeting payments is 2,224, with additional stock options or equity grants. Payments in stock are usually constituted of an initial grant and then additional stock for each year served on the board. According to Spencer Stuart, committee chair positions earn further compensation.
Fortune 100 company retainer payments are often considerably greater than average. However small companies have also been known to award very generous retainer packages. It is also common for directors to gain stock option grants from the sale or merger of the company.
Boards are generally comprised of individuals from very diverse and accomplished backgrounds. They have encountered various experiences that can provide insight for the company’s future. From gaining exposure to executives in other industries, or even within the same industry, you can gain exposure to others’ unique expertise and perspectives from a wide array of fields.
Finally, if the company that you are serving has a strong management team, board membership will also benefit your professional reputation in the business world. It is a compliment that a company is paying for your input and service. Ultimately, serving on a board will provide you with an attractive resume value add for your career growth, expand your professional network, and offer you the opportunity to serve on and learn from a diverse team of knowledge experts.
“Chilmark Advisors developed a strategy for me, wrote my wrote my resume, contacted all of the decision makers, on my behalf, and researched collateral information to assist me with interviews. They were very responsive and generated multiple board seat offerings for me.”
– Wendy L., Corporate Board Director