The Benefits of Serving on a Board of Directors

Board directors are accountable for ensuring that the executive management of a company is in its best interests. They also review the financial performance of a company and ensure that it complies with the ethical and legal standards. They are also responsible to decide on and approve executive compensation. The board is usually divided into sub-committees that focus on specific issues. The board is typically made up of a diverse group of people with different capabilities and backgrounds. Former CEOs, accountants and financiers can be on the board.

The benefits of being on a board are numerous and beneficial to your professional development. For instance, it can help you develop a variety of professional abilities, like working with other business leaders and stakeholders across different areas of the company. This can increase your standing and credibility as a leader in the business community and in the networks of your board colleagues and open doors to new opportunities in your professional career.

Based on the type of organization, it is common for boards to provide monetary rewards and other unique benefits to their members. These can include perks like the use of the company’s jet or access to exclusive products. This can be a major motivator for a lot of board members. However, if you’re contemplating being a member of a board it’s important to understand the potential duties and liabilities. If the articles of incorporation do not restrict your liability as a director to intentional wrongdoing, you could be sued by aggrieved parties.