Are you a board member? Are you paid monthly or quarterly?
I am asked this question frequently. Corporate governance has evolved so are board practices. Gone are the days of volunteerism.
To attract and retain the best talent, you must consider some form of remuneration. There are two types of board – not-for-profit and for-profit boards.
Most not-for-profit need volunteers. Do not join those boards expecting some form of payment. However, like all boards, you may receive a sitting allowance to help recover your travel costs to and fro the venue of the meeting. It is not good to expect anything over and above the sitting allowance since these organizations run on a restricted budget and most donors don’t want to pay for the board of directors or Trustees costs. To earn decent allowances, you must diversify revenues to reduce reliance on donor (restricted) funding revenue.
For profit-making companies like financial institutions and private businesses, these pay some form of a monthly retainer which is decent. Others pay sitting allowances that are decent.
To be continued.