Why do you want to be on a Board?
The answer is different for everyone. Sometimes it can be very basic, you stepped away from executive life and want to do something that utilizes your experience to help other people and organizations. Be aware that some people take a leap from executive work to a position on a Board, and it doesn’t always workout.
Never had a Board of Directors role?
One-third of new Directors in Fortune 500 companies are people who have never served on a Board before. But you still need to be realistic about not being a Director before.
Companies are just starting to take on more people without Board experience. One strategy is to bring on new (inexperienced) Directors and acclimate them to the responsibilities of that Board position – 5 or 10 years ago that would not have happened. With the new changes in Board thinking, it is also predicted that we will see a better representation of women in the future.
Training
There is training specifically to prepare executives for a role on a Board of Directors. Many Board members are not convinced that a couple days of training makes you a Board candidate.
Non-Profit Boards
Taking a role on a non-profit Board can be helpful as part of the first step if you’ve never been on a Board of Directors. In the US it is very valuable for networking – because you interact with other corporate people who may be Directors on those Boards, you gain applicable experience, and have an ability to impress the types of individuals who do sit on for-profit Boards and have influence.
How do you evaluate whether you are a good candidate for a Board of Director position?
Be realistic and honest about where you’ve been successful, scale and scope of roles you’ve had, and how that would be distinctive in the Boardroom. You have to shoot to hit the target that aligns best with your executive experience and expertise. Ask yourself, “How would I make a difference in this Boardroom?” It is all about what you have done - highlighting Board experience or experience that is valuable to working on a Board.
Be prepared to travel if you are seeking a position on a Board. There are 4-8 meetings a year and not always located in your hometown. In addition, if you volunteer for a committee, they are typically conducted by teleconferencing – sometimes requiring phone calls at all hours to meet with people in Asia and other parts of the country. Most people on an international Board only apply if they have a reason to be in that country. Some boards may ask for up to a 10-year commitment. Are you prepared to make that commitment?
Compensation and Incentives
The compensation for a Board position can be minimal to very lucrative, depending upon the organization and country. Some Boards pay for conference calls, meetings, expenses to travel to meetings, incentives, etc. For some, this can add up to $300,000 per year. There may be additional incentives if the Board is looking for an executive with specific talents that meet the needs and challenges they are faced with.
For public Boards, the level of rigor and intensity in the competition for the Board seats is different. Today most public company Boards base hiring a Director on the process and difficulties of the Board seat – very similar to a CEO hire. If you are a candidate think of it as similar to a CEO process.
How do you find a Board position?
Network with other executives, Board Directors members, and executive search firms to get your name out there and connect with the people who are making decisions for the Boards.
Be aware that there are thousands of companies that do not use executive search firms to find candidates.
Do’s and don’ts to reach out to recruiters: Effective approach: “Based on this part of my background I’m well suited for this type of company.” Ineffective approach: “I would be interested in anything, maybe retail or airlines.” Give real thought to things you have done that are relevant to what a Board does and thinks about – stages of development or other issues Boards deal with. Have an honest conversation with yourself about what your background lends itself to and where your skills are well suited.
Whether you are seriously looking for a position on a Board of Directors, or other executive roles, this information should help you understand the changes and hiring process that Boards are now using, and how that impacts you as an executive, CEO, or Board candidate.
Posted by:
Louise Garver
The answer is different for everyone. Sometimes it can be very basic, you stepped away from executive life and want to do something that utilizes your experience to help other people and organizations. Be aware that some people take a leap from executive work to a position on a Board, and it doesn’t always workout.
Never had a Board of Directors role?
One-third of new Directors in Fortune 500 companies are people who have never served on a Board before. But you still need to be realistic about not being a Director before.
Companies are just starting to take on more people without Board experience. One strategy is to bring on new (inexperienced) Directors and acclimate them to the responsibilities of that Board position – 5 or 10 years ago that would not have happened. With the new changes in Board thinking, it is also predicted that we will see a better representation of women in the future.
Training
There is training specifically to prepare executives for a role on a Board of Directors. Many Board members are not convinced that a couple days of training makes you a Board candidate.
Non-Profit Boards
Taking a role on a non-profit Board can be helpful as part of the first step if you’ve never been on a Board of Directors. In the US it is very valuable for networking – because you interact with other corporate people who may be Directors on those Boards, you gain applicable experience, and have an ability to impress the types of individuals who do sit on for-profit Boards and have influence.
How do you evaluate whether you are a good candidate for a Board of Director position?
Be realistic and honest about where you’ve been successful, scale and scope of roles you’ve had, and how that would be distinctive in the Boardroom. You have to shoot to hit the target that aligns best with your executive experience and expertise. Ask yourself, “How would I make a difference in this Boardroom?” It is all about what you have done - highlighting Board experience or experience that is valuable to working on a Board.
Be prepared to travel if you are seeking a position on a Board. There are 4-8 meetings a year and not always located in your hometown. In addition, if you volunteer for a committee, they are typically conducted by teleconferencing – sometimes requiring phone calls at all hours to meet with people in Asia and other parts of the country. Most people on an international Board only apply if they have a reason to be in that country. Some boards may ask for up to a 10-year commitment. Are you prepared to make that commitment?
Compensation and Incentives
The compensation for a Board position can be minimal to very lucrative, depending upon the organization and country. Some Boards pay for conference calls, meetings, expenses to travel to meetings, incentives, etc. For some, this can add up to $300,000 per year. There may be additional incentives if the Board is looking for an executive with specific talents that meet the needs and challenges they are faced with.
For public Boards, the level of rigor and intensity in the competition for the Board seats is different. Today most public company Boards base hiring a Director on the process and difficulties of the Board seat – very similar to a CEO hire. If you are a candidate think of it as similar to a CEO process.
How do you find a Board position?
Network with other executives, Board Directors members, and executive search firms to get your name out there and connect with the people who are making decisions for the Boards.
Be aware that there are thousands of companies that do not use executive search firms to find candidates.
Do’s and don’ts to reach out to recruiters: Effective approach: “Based on this part of my background I’m well suited for this type of company.” Ineffective approach: “I would be interested in anything, maybe retail or airlines.” Give real thought to things you have done that are relevant to what a Board does and thinks about – stages of development or other issues Boards deal with. Have an honest conversation with yourself about what your background lends itself to and where your skills are well suited.
Whether you are seriously looking for a position on a Board of Directors, or other executive roles, this information should help you understand the changes and hiring process that Boards are now using, and how that impacts you as an executive, CEO, or Board candidate.
Posted by:
Louise Garver
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