As you explore your career 2.0, being on boards is something many executives consider. It is a great chance to collaborate with other senior executives and give back. Being on boards is generally a small part of a broader late-career portfolio rather than a full-time job.
Considerations
Here are some key considerations as you think about being a board member:
Pros
Network: You work closely with other top executives on important topics. These collaborations are deep (often 1-2 days together at a time) so you build strong, lasting relationships
Learning: You see executive discussions and understand strategic company decisions. You also get to see what it is like on the other side of the table. Working with another CEO helps you appreciate how other executives approach complex challenges.
Giving Back: You get to share your knowledge and expertise
Cons:
You aren’t likely to get cash rich: Unless you are on the board of a public company or very large private company (these can pay in the mid-six figures), board fees for private equity companies generally range from less than $30k to $65k annually while VC boards are most often compensated with equity. And many boards require you to make an out of pocket cash investment. Don’t look at boards to fund your lifestyle, but if you pick the right breakout company you could make great equity returns.
Time Commitment: Make sure you are ready to commit for 3+ years (typical board term) and can give a full day (+travel) at least 4 times a year. Committee service may require additional remote and/or in-person commitment. Boards are high-commitment and you should treat them as such. If you are in a full-time job this commitment may be too much and you should clear with your company first. Also be careful not to get stuck on a board of a company that isn’t going anywhere… leaving part-way through your term is not looked well upon.
Legal regulatory risks: Even though not frequent, directors can be held liable for issues with a company’s governance, reporting and other decisions. Hence make sure there is D&O (Directors and Officers) Insurance, especially with public companies where any shareholder can sue.
Other Notes:
If you are an investor, you can get added to lots of boards (it is part of your job) but be aware that you generally can’t monetize these boards or join boards not affiliated with your firm.
For larger companies, you want to think about committee assignments as well. Most companies have three committees at the minimum: Audit, Talent & Compensation and Nomination. Depending on the nature of the company, there can be ESG, Risk, M&A, or Capital committees.
Checking out director’s competency matrix – often available in Investor Relations site – is a good research. Nike’s corporate governance site (link here). Also see Take 2’s director competency matrix at the bottom of the doc
As you add more than one board, pick wisely for future boards. You only have a certain number of slots. In the US, overboarding is defined as serving at 4 public companies. (Helpful resource here)
Come ready to serve, not just sit on a board. One of the mistakes operators make often as they transition to advisory roles is to be too prescriptive and too focused on execution. One experienced director once said, “head on, hands off.”
“I have worked closely with two public company boards as a member of the senior management team and serve on a private company board. I am inspired by directors who show up to serve by diligently learning the business, remaining objective, leading productive inquiry, and fostering leadership in others.” Kristin Anne Torres Mowat from Board Members: To Serve or To Sit?
What profiles do boards look for
Boards are typically not something you do early in your career and increasingly (and for good reason) diversity is important. Here are some of the key traits boards are looking for:
C-Suite Experience: There is a lot of pattern recognition that is important for boards. If you have served as a CEO before this is valuable because you have worked with boards and lived the challenges boards and CEOs collaborate on.
Diversity: Only in recent years has this become a positive but if you are a strong senior leader with diverse background, this will make you an attractive board candidate.
Industry Expertise: It is important for private company boards to bring a deep understanding of their industry. You should focus on boards in industries you know well. Generalists will struggle here so unless you have specialized skills listed below, highlight your industry expertise.
Specialized Skills: Some committees on boards require specialized skills that are in short-supply in conjunction with the other traits above. These include financial experience for the audit committee and cyber security experience. In addition, companies may have specific strategic needs.
Prior Board Experience: Getting your first board role is difficult. Once you have one, you can broadcast that and you pop up more on board searches. So see below 👇 on how to hustle for that first board role.
How to get on boards
Getting on boards is NOT easy. It takes hustle, persistence and focus. Below are some tactics we have learned from friends on boards. These are in (rough) order of how effective they are:
Work in a high profile exec role: Work in a senior role at a super hot late stage company that goes public or at a top tier public company and you will get on the radar for great board roles since you’ve lived through many of the key topics boards face.
Meet other board members: They get called for boards and can refer you.
Build relationships with executive recruiters: Executive recruiters often have a side specialty in boards. Board searches don’t pay much for them but they help recruiters build relationships with senior leaders.
Build relationships with investors: Companies often need independent board members with specific expertise. Investors are in great positions to nominate independent board members.
Build relationships with CEOs: Advising a company is a great way to start developing your first board role. Start by asking “how can I be helpful”, then become an advisor and build a relationship with a CEO
Board Diversity Organizations: There are many organizations now that help companies increase diversity on their boards. If you fit, get involved with them
Let people know you want to be on a board: This sounds simple but many people keep their desire for a board to themselves. Here are some ways to broadcast your interest:
Take calls with executive recruiters. Even if you aren’t looking for a role, if their firm does board searches, let them know you are interested in a board role
Share your board interest / current roles on your LinkedIn profile
Articulate the value you bring to a board: Be explicit in conversations and your LinkedIn bio to highlight the traits you have that are desirable to a board.
Start with a non profit board, including industry groups: While companies and executive recruiters don’t view these the same as company boards, if you are on a non profit board you can broadcast your board experience and build relationships with others who serve on both non-profit and for-profit boards..
Network: Here is a great article on how to build your network by giving first.
Board bio: Prepare a high level summary. Note that it's a much more distilled version than a resume. Helpful tip from Egon Zehnder here
Other Resources
Here is a terrific article by Allison Pickens on how companies should hire for boards
NACD (National Association of Corporate Directors): website
Stanford Directors’ College: website
WCD (Women Corporate Directors): website
Santa Clara University Women’s Corporate Board Readiness: website
Struggling with your Career 2.0 vision?
If you want help thinking through your options, we have partnered with some career coaches who specialize in helping you get clear on your next step.
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