The Third Turn

Written by Dr. Mark L. Vincent
The Third Turn Blog Header

A board member's cost: economics for organizational leaders

Posted by Mark L. Vincent on Nov 7, 2012 6:06:00 AM

A board member's cost: economics for organizational leaders.

Board members for an enterprise are compensated for their time and expertise. It is an expected cost for oversight. The balance point is to compensate fairly enough to capture a board member's complete attention. Too little and the type of board member you want is not going to be available or interested. Too much and board members become sorely tempted to preserve their board seats for the sake of the money. Establishing policy for how board compensation is determined becomes important. Biogen Idec does it through a board subcommittee. Other companies draw on consultative expertise to establish board compensation that ties to company performance, and not just a wage for time served.

Read More →

Topics: process consulting, board members, nonprofit sector, board compensation, organizational development consulting, Mark L. Vincent, Design Group International, organizational design

Mark L. Vincent Headshot 300x300
The Third Turn Logo-2

Blog Topics

See all

Subscribe to receive resources to help you and your organization grow and thrive.